Why Companies Succeeding in Mexico Are So Attractive
The manufacturing sector in Mexico is growing at a rapid pace due to the benefits that are reaped by companies that manufacture products that can be utilized in other countries. Companies that are successful in Tacna, Mexico possess the ability to employ people from other countries. Mexico has a thriving and growing middle class, which has an overall positive impact on the Mexican economy. The number of foreign investments in Mexico has considerably increased in the last five years. This is mainly because of the relative economic stability the country enjoys as compared to many other Latin American countries.
In order for businesses to succeed in Mexico, the Mexican government has provided a very favorable environment that encourages foreign investment. The government’s support for free trade within its borders facilitates foreign companies to invest in Mexico and has made Mexico a very competitive exporter of goods to the outside world. The Mexican government has also made significant structural changes to the procedures governing foreign investment in the country to facilitate this kind of business activity. These changes have made Mexico a favored destination for new investments not only in manufacturing but also in the service sectors like information technology, pharmaceuticals, tourism, finance and banking.
Companies Succeeding in Mexico have an advantage over companies in the United States or anywhere else in the Western Hemisphere because of their close proximity to the US. Mexico is an economic, political and cultural crossroad between North and South America, and it is rich in resources. It has an abundance of natural resources, such as oil, natural gas, copper, iron ore and zinc. All these assets are crucial in providing a competitive edge to companies succeeding in Mexico.
Another reason why companies succeed in Mexico is that it is an ideal location for production, distribution and processing of goods in which the United States is currently suffering a severe lagging economic condition. It has low unemployment and a low cost of living. It has lower labour cost than the United States, Canada or Europe. In short, it has the facilities and the workers necessary for businesses to function successfully in this Latin American country.
Mexico’s comparative advantages also make it an ideal location for international trading. First, it enjoys a free trade agreement with most countries of the North Americas, including the United States. It is a very important North American neighbor and offers the largest merchandise export market in the hemisphere. It plays an important role in trans-regional trade by facilitating regular shipments of consumer and business products between the North American markets and Mexico. It has significant free trade zones and customs offices throughout its three main regions – Southeastern Mexico, Central Mexico and Northern Mexico. Companies succeeding in Mexico can access markets, such as the United States, through its numerous free trade zones and customs offices, giving it access to the largest consumer market on the North American continent.
The third advantage, in no way related to advantages, but rather the availability of resources, makes Mexico an ideal location for trans-national and small business investment. Mexico has close proximity to the United States, Canada and Europe, which allows businesses to access these markets at a reasonable cost. It has low cost manufacturing and labor force, creating the need for businesses to reduce overheads. It has a large number of people from different origins, a low cost of living and a friendly business environment. These factors make Mexico an ideal location for trans-national enterprise.