How Foreign Investment Shapes Mexico's Economy
For over a decade now, Mexico has been concentrating on bringing in new foreign investors, a policy which is gradually producing excellent results and which has allowed particular areas of the country to grow since it begins to make goods for the Western world. Mexico is not only getting foreign investment (inversion extranjera) from the United States, however even has friends in several other areas of the Westernized world, all of whom are keen to begin making their merchandise in factories of Mexico and are increasing the gross national product of the country.
Like many other South American nations, Mexico is battling hard against years of poverty, criminality and gangs, however it even features a growing economy that is partly being bolstered by the gradual privatization of the country's public services and it is allowing foreign investment in the region without those investors being concerned by heavy export taxation or similar problems. Mexico has, of course, been putting into place a series of policies designed to persuade foreign investors to go into the country and has become probably the most common places for people curious about expanding their business from foreign investment (inversion extranjera). What this implies is that Mexico currently features a platform for growth, backed by Western money.
Since the 1990s, Mexico has been immensely invested in producing materials for the American and European markets. Earlier to that, the country was intensely limited and it struggled to survive both economically as well as socially. The changes came with the encouragement of the International Monetary Fund and similar associations, included the agreement recognized as NAFTA, which encouraged foreign investment in South American countries. Such a agreement paved the way for Mexico to throw open its arms to foreign investment and the changes which begun within the 1990s are now bearing good economic fruit.
The major modifications have resulted in Mexico becoming probably the most important countries for technological development and many of its young people have graduated from Universities with degrees in Technology and Engineering. Such youths are keen to work in factories producing technological items and their innovation and skill has left a deep impact in the people who are looking at patterns of investment within the nation. One such location is the Guadalajara area, called Mexico's Silicon Valley due to the huge numbers of technological businesses which are operating in the area and the merchandise which are rising through it.
Despite competition from different areas of the globe, particularly China and India, Mexico has proven to be a perennially reputable place for European and North American investors along with with the increasing growth of the economy it is probably to remain a significant player in the industry for several years to come.