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The role of industrial planning in trade is one of the most important areas of dispute between Mexico and the United States. The official U.S. stance stresses the dominance of the marketplace, while official Mexican industrial policy demands a large and active government role. Although the United States espouses free trade in theory, in practice it
First published in 1989, this book focuses upon the phenomenon of export-led industrialisation fuelled by foreign investment and technology. He concentrates on Mexico, where US companies have been taking advantage of inexpensive labour to establish "maquila" factories that assemble US parts for export. Through this detailed study of the maquila industry, Sklair charts the progress from the political imperialism of colonial days to the economic imperialism of today.
As decisively as the collapse of the Soviet Union signaled a most definite conclusion to that utopian undertaking gone mad, so has NAFTA ended an economic counterpart in Mexico. The United States and Canada are embarking on a grand experiment, incorporating Mexico into their very own economies, creating the largest trading bloc in the world consisting of more than 360 million consumers in an economy that will surpass seven trillion American dollars. For corporate America, an enormous opportunity lies in the integration of the Mexican nation into the economic and social fabric of North America. International business consultant and economist Louis Nevaer explains what these opportunities are and offers sage advice on how U.S. corporations can capitalize on them. The implementation of NAFTA heralds the final conclusion of the Mexican Revolution, and Mexico is now embarked on a race against time to make up for lost decades. Ernesto Zedillo, who will deliver Mexico to the 21st century, confronts enormous challenges as the authoritarian hegemony that characterizes the political economy of the Mexican nation-state is dismantled. NAFTA constitutes a blueprint for the systematic surrender of the Mexican economy. There is, however, no blueprint for the transformation of Mexico into a democracy. Herein lies the greatest risks to corporate America, for there is always the danger of self-destruction, as witnessed in some of the republics of the former Soviet Union. The discussion presented in this book examines the present realities of the Mexican nation in the age of free trade. In Part I opportunities and risks for corporate America are analyzed, not only within an economic context, but also within a cultural and historical one, as well. Presented in Part II are the processes that have shaped Mexico over the centuries—Spanish rule, Native American civilizations, the trauma of conquest—which have given rise to the Mexican persona and character. With this understanding as background, the American reader gains a strategic advantage in understanding how the Mexican psyche works and which buttons to push. Finally, Part III presents a practical approach to conducting business in Mexico, which ranges from the legal requirements of opening a subsidiary, to a warning about the prevalence of corruption in Mexican society, as well as the existence of racism in Mexican culture.
Mexico is open for business. The sizzling combination of liberalized foreign investment laws, increased privatization, and a less restrictive regulatory environment, is presenting international firms with dramatic opportunities for expansion and profit. Already, astute executives are capitalizing on these attractive new conditions by integrating Mexico's once-closed market into their global sourcing, production, distribution, and marketing systems. Brimming with priceless insider information developed both from B.I.'s vast research capabilities and three decades of experience monitoring developments in Mexico, this peerless guide examines the opportunities and reveals the risks of doing business there. Its clear, current analysis steers executives and strategic planners - from any size or type of company - through Mexico's shifting political, economic, and regulatory climate, and defines the best ways to position their firms for growth and success in this new operating environment. You'll find priceless business intelligence and indispensable analysis of: . Mexico's shifting regulatory climate. B.I.'s experts provide vital information on the rapidly changing business and financial regulations in today's Mexico. Here are the in-depth appraisals you need to understand how tax policies, financial deregulation, foreign exchange and trade liberalization, environmental laws, and wage and labor conditions impact current and future investment opportunities. Key indicators and economic developments. You'll discover how Mexico's new economic structure really functions in light of the impending North American Free Trade Agreement. Abundant, easy-to-follow charts and tables illustrate the movementof key economic and financial indicators, and attention is focused on Mexico's changing trade profile and its success in stabilizing inflation, interest rates, and the peso. The corporate response to Mexico's changing competitive environment. Discover how major international firms like IBM, Sanyo, Black & Decker, Hewlett-Packard, and others, are revamping manufacturing and logistics networks, forming strategic alliances, relocating product lines, globalizing brands, and acquiring local companies. Candid interviews with top executives with years of experience doing business in Mexico reveal the unwritten rules for success. Opportunities and perils of key economic sectors. The Guide supplies a systematic, industry-by-industry survey of current and future business prospects in the major segments of the Mexican economy - agriculture, automobiles, petrochemicals, computers, consumer goods, finance, banking, retailing, telecommunications, and tourism. The sections on the maquiladora program explain how this vital offshore production option is helping U.S.-based firms confront stiff competition in their home markets. No other business resource provides corporate decision makers with such a wealth of practical, hands-on information, analysis, and in-depth corporate case studies. Only Business International's Guide to Doing Business in Mexico demonstrates the most effective strategies for gaining entry into Mexico's burgeoning economy and positioning your firm for unparalleled growth and prosperity there - today.
Understanding your market and the value creation though your supply chain is a relatively young discipline. Thanks to new statistical indicators, it is now possible to conduct sectoral market analysis in value-added. This paper is an application to Mexico and the NAFTA. The objective of this conference paper is to map and characterize the various NAFTA Regional Value Chains, their evolution since the inception of NAFTA and identify the industries that are the most vulnerable to a disruption of the regional supply chain providing them with competitive inputs. To measure the vulnerability of Mexican industries to a disruption of the regional supply chain (the ultimate objective of the exercise), the paper estimates the impact on production costs on key manufacturing sectors that would be expected from a reversion of NAFTA under various hypothesis. When looking at the performance of Mexico in the US manufacturing market, the paper points at some substitution between Canada and Mexico as US supplier of inputs. It shows that, by supplying competitive inputs to the US manufacture exporters, Mexico and China helped the efforts of the US industry to remain competitive on the world market. This is in particular the case for the US automobile industry. The analysis of the sectoral origin of the value added embodied in Mexico's exports of manufacture to the US reveals also the low content of embodied business services in Mexican products. Considering that manufacture and business services are the main driver of competitiveness, this result is worrying. (This paper is the conference version of an article ultimately published in Spanish.).
Economic relations between the US and Mexico are becoming an increasingly important part of the economic agenda of both countries, and it seems inevitable that closer economic relations will result. This book examines the prospects for increased US-Mexican economic integration.