Despite some adverse conditions facing Mexico at the moment (cough Trump cough), the Mexican government has kept up its steady promotion of the country as a destination for foreign direct investment. A couple of high-profile investments in the automotive industry appear to have been waylaid by threats or uncertainty over the future of NAFTA, but overall large foreign companies with long-term strategies for the Americas continue to establish new Mexico operations or expand existing ones. Within this context, we once again took a look at the less-heralded flip side of Mexico FDI – investment by Mexican companies in other countries. Continue reading Big Mexican companies keep investing abroad
For a while there it seemed like the only topic the International business media wanted to talk about was China – the economic miracle, the manufacturing giant, the double-digit growth. And then, it was Brazil. BRICs! Emerging market powerhouse! A seat at the table of world affairs! Meanwhile, back here in Mexico we skulked in the shadows, grinding away to build up our manufacturing base in the face of cheap Chinese competition and uttering oaths as other countries captured the limelight.
But the media are fickle, and they love nothing more than a splashy trend. And lately, all of a sudden, it seems like you can’t swing a quarterly report without hitting a story on Mexico’s burgeoning competitiveness for advanced manufacturing. And as Mexico comes blinking into the glare of favor, reports of major new foreign investment in the country are piling up in areas such as automotive and aerospace manufacturing. We’re chuffed of course, but as we sift through the smaller headlines we’re seeing another trend that has received almost no attention at all: An apparent newfound enthusiasm among Mexican companies to invest in other countries. Although investment can rise and fall due to a range of external factors, figures from the United Nations Conference on Trade and Development (UNCTAD) indicate that direct foreign investment by Mexican companies from 2009 through 2011 reached US$29.5 billion, nearly double the amount registered over the previous three-year span. The following are some examples of how this trend has gathered steam. Continue reading Mexican investment abroad growing under the radar