Vol. 6 Num. 1 - GCG: Revista de GlobalizaciÃ³n, Competitividad y ...

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Melba Falck Reyesliberalization (1985-1993), (Figure 1). Approximately half of this flow targeted the manufacturingsector, and a third the services sector, including financial services. However, dependingon their country of origin, TNs have shown different interest in sectors’ investment. Thefinancial sector, for instance, is practically in the hands of Spanish and North American enterprises;in the distribution sector, the big North American commercial chains are displacingthe local retail distributors; and recently, there have been mergers and acquisitions (M&A)in the alcoholic and beverages sub-sector of the Mexican agro-industrial sector. Japaneseinvestment, on the other hand, is concentrated in the manufacturing sector. The largest FDIproportion has been linked with the Mexican export sector and it has concentrated on theautomobile and electronic sectors.39Figure 1. Mexico Inward Foreign Direct Investment 1985-2010*.Million US dollars35.00030.00025.000NAFTATotal FDIGlobal Crisis20.00015.00010.0005.000United States0-5.000Source: own ellaboration with data from National Institute of Statistics and Geography (INEGI), Statistical Information Bank, available at:http://dgcnesyp.inegi.org.mx/cgi-win/bdieintsi.exe/NIVZ101490#ARBOL and Mexico´s Ministry of Economy (Secretaría de Economía);Foreign Direct Investment General Management Office (DGIE); (http://www.economia.gob.mx/?P=1228)*From 1999 on, the institution in charge of preparing the official statistics of Foreign Direct Investment, the Bank of Mexico, changed themethodology. Therefore, the data for previous years to 1999 is not exactly comparable and it is included in this graph with the only purpose toshow previous tendencies.GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 36-54
Japanese Foreign Direct Investment in Mexico and the Impact of the Global Crisis40For their part, the East Asian investment flows have entered the country by two routes: directlyfrom their countries of origin and indirectly from their subsidiaries established in theUS. One of the main characteristics of the FDI flows coming from East Asia is that they areclosely linked with Mexico´s imports from that region. Hence, Mexico’s chronic deficit withEast Asia has its roots in both its trade policy, which is greatly dependent on the US marketfor its exports, and in imports caused by the intra-firm, inter-firm and arm’s trade relations ofAsian companies (mainly Japanese and South Korean) established in Mexico.In fact, since NAFTA was signed, exports to the US have increased in relative terms notwithstandingthat Mexico has signed FTAs with other major economic powers (the EuropeanUnion and Japan). And although Mexican exports to Asian countries have increasedin absolute terms, they remain low in relative terms, indicating that Mexico has not takinginto consideration the great potential offered by the growing and rich Asian markets. However,on the imports side, the US has lost importance in favor of Asia. The main partners ofMexico in that region, Japan, South Korea and China, have increased their share of Mexicanimports from 7.9% in 1993 to 20.9% in 2008, a fact that shows the strong link with AsianTNs established in Mexico (Falck Reyes and León-Manríquez, 2010b: 117-119).Finally, in the first decade of this century, inward investment flows in Mexico have shownless dynamism, signaling the need for deepening the investment liberalization process startedin the nineties that has to do with the more protected sectors of energy, oil and telecommunications.Other bottlenecks are found in the need to create more physical infrastructureto support the current high levels of trade volume, to develop human capital and mediumand small enterprises and to deepen the penetration of the financial sector in the economy(Urata & Sasuya 2007; OCDE 2007). Notwithstanding these challenges, in the last two decadesMexico has managed to construct a strong trade sector on the basis of foreign directinvestment, which has placed the Mexican economy among the top 15 major exporters andimporters of the world.3. Outward FDI from JapanIn the nineties, the Japanese economy slowed its growth rate and faced serious structuralproblems characterized by a high cost structure that hindered the nation’s competitiveness.The traditionally protected sectors, such as agriculture, distribution and financing, beganto become a burden for the economy. This was reflected in high food, housing, energyand transportation prices, which caused Japan to have one of the highest costs of livingamong the industrialized nations. Also during this decade, Japanese outward FDI increasedsubstantially, a pattern that continued during the next decade and made Japan one of themain sources of foreign investment. As Figure 2 shows, Japanese outward FDI presented anincreasing pattern, except for the four years following the bursting of the ‘bubble’ economyin 1989 and the last two years given the effect of the global crisis.GCG GEORGETOWN UNIVERSITY - UNIVERSIA ENERO-ABRIL 2012 VOL. 6 NUM. 1 ISSN: 1988-7116pp: 36-54
Page 2 and 3: CARTA DEL EDITOR IN CHIEFEditor in
Page 5 and 6: StaffDe la Torre, José, Dean, Chap
Page 7 and 8: Staff2. MULTINACIONALES, INVERSIÓN
Page 9 and 10: SELECCIÓN PROCEDURE PROCEDIMENTOIN
Page 11 and 12: Instrucciones para Autores y Proced
Page 14: INDEXACIÓN INDEXING INDEXAÇÃOInd
Page 17 and 18: Economic Relationships between Lati
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Page 24 and 25: Miguel A. MontoyaThe rest of the pa
Page 27 and 28: International Joint Ventures among
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Page 55 and 56: 561. IntroductionClusters and indus
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Entrepreneurial Clusters in China a
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921. Introduction: Mexico and China
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Why isn’t Mexico on China’s Gro
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1081. IntroductionChina and Latin A
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Promote China-Latin American Relati
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1161. A Brief History of Economic r
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Building the New Silk Road across t
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Zhu HongboIn fact, some Latin Ameri
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Zhu Hongbo5. Conclusions135China an
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1. Introduction137China’s emergen
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Edy WongTable One: Compositions of
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Edy WongTable 2: China’s R & D Ex
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Edy Wongon ‘new economic geograph
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Edy WongIn today’s global market,
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Edy Wongdemand-side factors in the
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Edy Wongterms of quality, reliabili
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Edy Wongindustry. Second, value cha
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Edy Wongconsumption of Western luxu
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Edy WongReferences155Child, J.; Rod
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