Motivations for investing in Mexico - experience of Finnish companies
Estrada Flores, Maria Carolina; Bautista Reyes, Samantha Carolina (2008)
2008
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202501081086
https://urn.fi/URN:NBN:fi:amk-202501081086
Tiivistelmä
This study examines the aspects that determine Foreign Direct Investment (FDI) in Mexico as well as the advantages of doing business in this country, with the purpose of stimulating foreign investment attraction to Mexico. The study makes use of surveys to identify the determinants that motivated the Finnish companies to invest in Mexico, as well as to find out the aspects that can motivate other companies to invest in Mexico.
This research on the experience of Finnish companies in Mexico has found evidence that there is a powerful positive relationship between the market size of the country and Foreign Direct Investment inflows. There is also proof of the strong relationship between the geographical location of the country as FDI determinant and the investment decision that the companies have to make. The results also seem to suggest that low labour costs have a significant positive impact on FDI inflows. Concerning the attraction of FDI to Mexico, the results suggest that increases in the development of infrastructure and the growth prospects of the country promote FDI. On the other hand, high tax rates and governance concerns together with corruption appear to discourage FDI inflows.
This research on the experience of Finnish companies in Mexico has found evidence that there is a powerful positive relationship between the market size of the country and Foreign Direct Investment inflows. There is also proof of the strong relationship between the geographical location of the country as FDI determinant and the investment decision that the companies have to make. The results also seem to suggest that low labour costs have a significant positive impact on FDI inflows. Concerning the attraction of FDI to Mexico, the results suggest that increases in the development of infrastructure and the growth prospects of the country promote FDI. On the other hand, high tax rates and governance concerns together with corruption appear to discourage FDI inflows.