Direct Foreign Investment in Mexico Expected to Grow Exponentially

Mexico may receive up to $20 billion in foreign direct investment this year, an increase of 11 percent over last year. The automotive industry is a key place for foreign investment in Mexico. Volkswagen AG, Nissan Motor Co., Mazda Motor Co. and General Motors Co. have all invested over $400 million each in the country. The ever-growing automotive industry and increased foreign investment in Mexico are due to a wide variety of factors. Financial analysts suggest the incentives for investment in the country include Mexico’s fixed production costs – which are 25 percent lower than in the United States, a growing number of engineers in the workforce, and free trade agreements between Mexico and other nations.