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Suffering from the economic crisis and development dilemma in the beginning of 1980, the president of Mexico, De la Madrid, implemented a series of economic reforms on the basis of Neoliberalistic economic thoughts since 1985. And the successor president Salinas adopted the export orientation strategy and started the way of economic liberalization from now on. In order to practise the liberalized policy, the Mexican government on the one hand, stabilized macroeconomic environment and improved domestic investment environment; on the other hand, revised the foreign investment law and welcomed the foreign investor to participate in every industry in the country. During the decade, Mexico has reached very significant achievement in macroeconomic reforms or in foreign investment since 1985. Especially, the establishment of North American Free Trade Zone in 1994, mobilizing the human resources, natural resources, modernized technology and capital among the three member nations, helped increase the foreign direct investment (FDI) in Mexico and also opened another window for Mexico to proceed into international market. Foreign direct investment, accompanying with the rising of multinational enterprisers becomes the main power of economic development. For host country, it is not only the supplier of capital sources, but also the introducer of tangible or intangible assets such as technology, marketing strategies and methods ofmanagement, etc. The main purpose of this thesis is to analyze the characteristics of the structural change of FDI during these years in Mexico, especially the role of FDI in sectoral dynamic change and in the process of being integrated into the international industrial order. In addition, it also analyzes how the multinational enterprises impact the Mexican industrial structure and how to promote international competitiveness in the outward orientation strategy and how to increase employment opportunities to help the economic development in Mexico.
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