FOREIGN DIRECT INVESTMENT IN MEXICO (FDI)INTRODUCTIONMexico is the largest trading nation in Latin America and the ninth largest economy in the world. No country has signed more free trade agreements – 33 in total, including the world's two largest markets, the US and the EU. In total, these signatory countries constitute a preferential market of more than a billion consumers. Much of FDI into Mexico is attracted by the country's strategic location within the North American Free Trade Agreement, which makes it a stepping stone to the United States and Canada. Other attractions are competitive production costs and a young, skilled workforce, as well as political stability and an open economy. As a result, the number of foreign companies established in Mexico has risen to more than 16,000. Opportunities for investors are numerous, especially in sectors such as automobiles, electronics, information technology and communication, agri-food, chemistry and pharmacy, biotechnology, financial services, water and electricity production. As part of the Mexican government's campaign to attract FDI, the 44 overseas offices of the Mexican Bank of Foreign Trade (Bancomext) operate as trade commissions that offer advice and assistance to potential investors. Mexico has long been one of the most attractive countries to invest in, whether in manufacturing or infrastructure FDI. The large population, cheap labor pool, stable political environment and proximity to the United States have given it significant advantages over other potential FDI recipients. Mexico is an example of how emerging markets can attract foreign capital flows into their economies. In 1999, Mexico remained the third largest destination for FDI among emerging markets, after China and Brazil. Globally, Mexico ranks 15th among FDI recipients, accounting for 1.3 percent of total investment flows. In the first three months of 2000, Mexico received $3 billion in FDI and the year is expected to end at $12 billion. In addition to Mexico's economic reforms and liberalization processes, an important element in making Mexico a very attractive market for foreign investors. Foreign investors have negotiated bilateral investment treaties (BITs). To date, Mexico has concluded this type of agreements with 13 countries (Argentina, Austria, Benelux, Denmark, F...... middle of paper... ...The manufacturing industry participates with 79.0 %• Transport and communications with 3.0%• Financial services with 2.9%• Construction with 0.4%• Extractive industry with 0.3%• Agriculture with 0.1%• Electricity and water with 0.1%COUNTRY WHERE FOREIGN DIRECT INVESTMENTS COME FROM Foreign direct investments made in Mexico mainly come from the United States, the Netherlands, Germany, Canada, Spain, the United Kingdom and Japan FDI. allowed Mexico to acquire new technologies, improve its infrastructure, boost productivity and increase its competitiveness in global markets. Today, Mexico is a major producer and exporter of automobiles, televisions and laptops More and more foreign companies are participating in Mexico's development and have become a key part of Mexico's industrial transformation. New capital helped rebuild its industrial base, transforming the country into what Business Week called a new "industrial powerhouse." ».