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| Home > Export > Why Mexico ? |
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WHY MEXICO ? |
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Strategic location:
- Manufacturing in Mexico facilitates “just – in – time” practices.
- Door to door deliveries in less than a week, compared to China (where it can take up to 6 weeks to reach the port of L.A.).
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One of the most open countries in the World:
- Besides the NAFTA, Mexico has in force 10 agreements with the EU, Japan, Israel and Latin American (41 countries & 1 billion consumers).
- For non – partner countries, MFN duties will be reduced from 10.4% to 4.3% in 2013; also paperwork will be reduced and substituted by electronic processes (“single window’).
- This strategy will allow Mexico to be considered as a relevant platform to produce and to export to other countries.
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Attractive destination for Foreign Direct Investment:
- A.T. Kearney has ranked Mexico as the 8th most attractive destination for FDI.
- Improved 11 positions between 2007 and 2010 (2010 A.T. Kearney Foreign Direct Investment Confidence Index).
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Competitive costs:
- Manufacturing costs to outsource the US market are more competitive in Mexico than in China, India and Brazil – (Alix Partners, 2009).
- Mexico has a business average cost advantage of 20.5% lower relative to developed countries like the US (KPGM, 2008).
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A legal framework that grants certainty:
- Intellectual Property Rights (covered in the international treaties and the Mexican Institute for Intellectual Property – IMPI).
- Bilateral Protection and Promotion of Foreign Investments (BIT’s).
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Population:
- Young and highly qualified (130,000 engineers graduate every year).
- Competitive labour costs.
- Domestic market is also very attractive to foreign companies: 117 million of consumers and per capita income is more than twice that of China and four times that of India (CIC, 2010).
- Mexican population is mostly young. This factor can complement the Canadian and U.S. population trends.
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