[HN Gopher] Mexico's Investment Boom
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       Mexico's Investment Boom
        
       Author : paulpauper
       Score  : 9 points
       Date   : 2024-03-11 20:46 UTC (2 hours ago)
        
 (HTM) web link (www.apricitas.io)
 (TXT) w3m dump (www.apricitas.io)
        
       | cute_boi wrote:
       | I think they will prosper if they can fix cartel issue. Cartel is
       | hurting Mexico by a lot.
        
         | alephnerd wrote:
         | Cartel violence largely occurs in the parts of Mexico not
         | seeing the rise of investments.
         | 
         | For example, Monterrey and Nuevo Leon in general has always
         | been fairly calm and it is a major hub globally for automotive,
         | power electronics, and machining.
         | 
         | Most of the rise of criminalization in Mexico can be tied to
         | the economic crises of the 1994-96 (peso crisis), 2001-03
         | (factories moving from Mexico to China), 2008-09 (collapse of
         | automotive industry in the US, and then COVID (8.3% GDP
         | contraction - one of the worst globally).
         | 
         | Whenever the Mexican economy recovers, criminality tends to
         | recede.
        
       | alephnerd wrote:
       | I think a lot of HNers seem to forget that barely 25 years ago it
       | was very common to see "Made in Mexico" products in North
       | America.
       | 
       | It was our original China/"Factory of the World".
       | 
       | That only changed in the early 2000s when China was admitted to
       | the WTO, and low wage manufacturing (eg. Maquiladoras) shut down
       | and moved to China.
       | 
       | Now that Chinese manufacturing costs roughly rival those in
       | Mexico, a number of industries such as Chemicals and Machining
       | have returned.
        
         | givemeethekeys wrote:
         | Yup - and those Mexican factories are owned by Chinese firms.
         | Hopefully they will employ / contribute positively towards
         | Mexico's economy.
        
           | alephnerd wrote:
           | > those Mexican factories are owned by Chinese firms
           | 
           | Not really.
           | 
           | The bulk of FDI in Mexico comes from the US, EU, Canada, UK,
           | and Japan [0]
           | 
           | The China factor plays well in the news but German (Siemens,
           | Schneider) and Spanish (SEAT/Volkswagen) have a massive
           | historical presence in Mexican industry, and at the end of
           | the day, NAFTA/USMCA makes it very easy for American
           | companies to operate within Mexico (and vice versa).
           | 
           | [0] - https://www.proyectosmexico.gob.mx/en/why_mexican_infra
           | struc...
        
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       (page generated 2024-03-11 23:01 UTC)