1. Embracing Globalization: Contrasting Responses of Mexican States to Competition from China.
- Author
-
Nelson, Roy
- Subjects
- *
GLOBALIZATION , *INTERNATIONAL competition , *FOREIGN investments , *INTERNATIONAL trade - Abstract
China poses a strong challenge to Mexico in the global competition to attract foreign direct investment (FDI). In the 1990s, Mexico experienced dramatic increases in FDI, particularly from U.S.-based transnational enterprises (TNEs) taking advantage of the North American Free Trade Agreement (NAFTA). Now, however, seeking to lower their costs of production, many TNEs are moving their manufacturing operations from Mexico to China. This paper examines how two different state governments in Mexico â" the states of Nuevo Leon and Jalisco â" have responded to this global challenge by seeking to move up the value chain in the global production process. Rather than focusing on low-cost manufacturing, they are now seeking to remain competitive by promoting higher value-added activities in specialized niches in which Mexico can compete with China. By comparing these contrasting cases, this paper argues that governments that can develop their transnational learning capacity â" their ability to learn which sectors to target, and how to respond to prospective investorsâ needs and concerns â" will be the most effective at responding to Chinaâs competitive challenge. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]
- Published
- 2008