When the United Nations Conference on Trade and Development published the World Investment Report in 2021, they listed Mexico as the 9th receptor of foreign direct investment. Why and how is this Hispanic country attracting investors? If you are considering doing business in the land of spicy food and colorful festivals, read on to find out why you should do so.
1. Mexico Is One of the Biggest Countries in the World
Mexico is the 14th country in the world in terms of size. It is 3rd among Hispanic countries. With 127 million inhabitants, this represents a large potential market, both in the short and long term.
2. Mexico Has One of the Most Important Economies
In 2007 in “Beyond the BRICs: A look at the Next-11”, an article released by Goldman Sachs, Mexico was named one of the 11 most important economies according to BRIC’s standard. Additionally, in 2015 the Mexican GDP closed at 1.444 billion, which shows that Mexico enjoys a flourishing economy. Manuel Barreiro Castañeda and other investors have been investing in the country for that reason.
3. Strategical Location
Mexico is the perfect link to Latin America. It is surrounded by two oceans and shares a border with the United States. This brings advantages in negotiations in both countries, providing investment opportunities without crossing long distances. It is also near the middle of both North America and South America, making it a great location for any business that has to deal with both continents.
4. Natural Resources
Because of its diverse climates, Mexico has an extensive variety of natural resources. It is the perfect place for different animal industries due to the low cost of feedstock and production.
As far as the food industry goes, Mexico is the 2nd biggest exporter of frozen orange juice and cocoa powder and is the 5th biggest exporter of cookies. However, internal consumption also represents one of the pillars of the Mexican economy.
Beaches, mountains, jungles, ancient history, and more make Mexico one of the most important tourist destinations in the whole world. It was ranked 9th, with 30 million visitors entering every year. The travel and hotel industries are active all year long, representing a constant benefit to people and investors who have stakes in the country.
6. Other Industries
Besides the tourism and food industry, Mexico also is developing other industries, such as the growing renewable energy industry, and the health and pharmaceutical sectors as well. The automotive, electronic, technology and software industries also have a strong presence in Mexico today.
7. Free Trade Agreements
Mexico has benefited from its vast network of free trade agreements with countries all over the world, and they assure preferred access to markets in the US, the European Union, the countries that are part of The European Free Trade Association, Israel, and ten associated countries in Latin America. Those agreements include tariff rates that are beneficial to the importation from those countries and make it much easier and cheaper to get your goods into Mexico.