PepsiCo Opens New Beverage Company in Mexico

This July, it was announced that PepsiCo was initiating a new merger with the Mexican bottling company, Grupo Embotelladoras Unidas. Still pending approval from the Federal Competition Commission of Mexico, the two companies will complete discussions about the merger by late September 2011. After the formation of a strong partnership and the new beverage company in Mexico, GEUPEC will hold a majority interest in the joint venture...

Google Defends Investment

Larry Page, who is the chief executive of Google, defended his company's controversial investment priorities, after having reported higher-than-expected earning for the second quarter.

Wall Street has repeatedly reported it's worries that have spun out of control this year as Google has launched a number of ambitious expansion plans, including its recently launched Google+ social networking service. Click here to get the full story.

Mexican Soft Drink Company, Coca-Cola FEMSA, to Acquire Tampico

The Mexican soft drink company, Coca-Cola FEMSA, is expected to acquire Tampico, one of the biggest soft drink bottlers in Mexico for 790 million dollars at the end of the third quarter this year. Read more about what's behind the acquisition here.

One Way Investing in Mexico Affects the U.S.

For those that believe that undocumented immigration from Mexico to the U.S. is a problem, there is a very good way to calm the appetite for the American dream: invest in Mexico.

"No one wants to hear it, but the flow has already stopped," Douglas Massey of Princeton told the New York Times in regard to the amount of illegal immigration from Mexico to the U.S. He continued, "For the first time in 60 years, the net traffic has gone to zero and is probably a little bit negative." The primary reasons: The Mexican birth rate has fallen to about two children per woman from nearly seven in 1970; Mexico's education system and economy have improved to a point more young people choose to stay (per family income is up 45 percent this decade); and drug violence along Mexico's border is likely deterring those who do think of crossing. It seems that stepped-up border enforcement and Arizona SB1070-type laws have little to do with the decline [...]."

Basically, Mexicans that emigrate to the U.S. are searching for a better life and more opportunities. Most simply want to be a part of a middle class and are willing to leave their country behind to find it. Foreign investments in Mexico have made a huge improvement in the general economy, spurring job growth and amplifying stock and trade numbers.

If you think that this is a problem for the U.S., one of the things that can really improve the issue is investing in Mexico in order to improve the economy and further resolve unemployment rates and urge to relocate to the U.S.

Auto Industry Telling of U.S.-Mexico Trade and Economy Relations

When speculating on trade relations between the U.S. and Mexico, it's easy to refer to a variety of resources for an estimate on which is the biggest trade product. As this Houston article mentions, "Anyone wondering which industrial sector is the most important in U.S.-Mexico border trade only has to see what the double-stacked freight cars [...]."

This large amount of trade across borders is indicative of the health of cross-border trade between the U.S. and Mexico.

In the words of Keith Patridge, the McAllen Economic Development Corp. President,"We lost a few factories that did not survive the U.S. recession, operations that were purchased or merged. But Reynosa last year added 4,000 jobs, even with the violence, at maquiladoras in all categories."

Read about what other business leaders had to say about the increase in foreign investment in Mexico.

More Foreign Investment in Mexico Has Lead to A Protected Economy

From El Financiero:

El Financiero reported today that foreign institutional investors put more money into Mexico during the first quarter of this year compared to same quarter last year, creating a barrier against the negative effects of the global economy. The board also analyzed what impact the EU, particularly Greece, might have on Mexican economics.

Read the entire report here. (Report in Spanish)

The Rise of Mexico's Aerospace Industry

From The Financial Times:

Aerospace is the latest technical sector to spring up in Mexico. In the last 10 years, the total of aerospace companies operating in the country has risen to 238, with exports of roughly $3.5bn a year. Annual average growth has been 20 per cent a year since 2002.

“Simply put, Mexico is becoming more competitive,” says Bruno Ferrari, the country’s economy minister.

Carlos Bello, director-general of the Mexican Federation of Aerospace Industries (Femia), says he expects exports to reach $12 billion by 2020. He also stated that he expects a rise in Mexico's place from 14th place today to one of the top 10 most important aerospace manufacturers.