investing in mexico
DESCRIPTION
Information by www.promexico.gob.mxTRANSCRIPT
INVESTING IN MEXICOOpportunities in Emerging Countries
WHY MEXICO? Workforce costs
Significant savings in labor force costs compared to other potential investment locations in America, Europe or Asia.
WHY MEXICO? Mexico vs China 2008 labor force costs. Excellent export platform for North American and European
markets.
MEXICO: THE HIGH PROFIT ALTERNATIVE
Competitiveness findings: Advantages in industrial construction, export fees, land, rent,
labor costs and taxes.
Brazil Mexico India China0%
20%
40%
60%
80%
100%
120%
96%82% 82%
74%
112%
75% 80%
94%
Manufacturing cost index (vs US)
20052008
Source: KPMG
WHY MEXICO? Open economy
Largest number of Free Trade Agreements (FTAs) in the world covering 43 countries on three continents.
Strategic access to over one billion consumers which represents close to 60% of the world’s GDP.
WHY MEXICO? Infrastructure power
Highways: More than 350,000 Kms. Railroads: Moving more than 93 million freight tons. Ports: Moving more than 300 million tons and more than 12
million passengers Airports (60) : More than 55 million passengers /year 2008 – 2012 National Infrastructure Plan (226 US Billion)
WHY MEXICO? Macroeconomic Stability
Ranked 28th in Global Competitiveness Report 2011 by the WEF. 30.3% of Government debt as percentage of GDP. Better solvency than countries such as Brazil, Argentina, India,
Poland and the United States.
Exports $300 billion USD (15th ) # 1 in Latin America Mexico’s exports are
greater than total of Argentina, Brazil, Costa Rica, Paraguay & Uruguay combined!!
SIZE OF ECONOMIC GDP (2008 BILLION DOLLARS)
1. U.S.A. 14,334 2. Japan 4,844 3. China 4,222 4. Germany 3,818 5. France 2,978 6. U. Kingdom 2,787 7. Italy 2,399
8. Russia 1,779 9. Spain 1,683 10. Brazil 1,665 11. Canada 1,564 12. India 1,237 13. México 1,143
Source: IMF
WHY MEXICO? Country Risk
Also, our country risk level, which is at a 2.3% rate, is more competitive than that of Brazil, India and Turkey, that is, 3.0%, 3.6% and 4.1% respectively.
WHY MEXICO? Favorable exchange performance
Virtually balanced to the US dollar and the Euro. Other emerging markets register a strong currency appreciation
which translates into higher costs.
IS MEXICO DANGEROUS? Problem isolated in 15 municipalities out of more than 2,500
5,000 people were killed in 2008, because of the “drug war,” but vast majority were either drug dealers / or were part of the forces (Army / Police fighting them),
RECENT INVESTMENTS IN MEXICO
Best Buy hopes to open between 2 and 5 new stores in 2009. Daimler A.G. invested $445 million in a new plant in Saltillo to
manufacture Freightliner trucks; Procter & Gamble announced that it will build a $250 million plant
in Guanajuato to manufacture razor blades, generation 2,400 jobs; Abbott announced a $100 million to build a plant in Mexico City; Motorola has opened a Design Engineer Center in Monterrey; Sony Corporation and Hon Hai Precision Industry are establishing
an strategic alliance for the production of LCD TVs; Boehringer Ingelheim has invested more than $100 million in
Mexico, $70 million in 2008;
CONCLUSION