Mexico presents opportunities for investment and profitability due to lower labor costs compared to other regions. While labor costs in China were lower than Mexico in 2008, Mexico provides advantages in industrial construction costs, export fees, land and rent prices, taxes, and proximity to North American and European markets. Mexico has a large, young workforce and is politically and economically stable with a growing GDP and numerous free trade agreements. Despite security concerns in limited areas, Mexico offers infrastructure, skilled labor force, and an open economy for manufacturing exports. The document promotes Mexico as an attractive high-profit alternative to other emerging markets for foreign investment.

1. INVESTING IN MEXICO
Opportunities in Emerging Countries

2. WHY MEXICO?
 Workforce costs
 Significant savings in labor force costs compared to other
potential investment locations in America, Europe or Asia.

3. WHY MEXICO?
 Mexico vs China 2008 labor force costs.
 Excellent export platform for North American and European
markets.

4. MEXICO: THE HIGH PROFIT ALTERNATIVE
 Competitiveness findings:
 Advantages in industrial construction, export fees, land, rent,
labor costs and taxes.
Manufacturing cost index (vs US)
120% 112%
100% 96% 94%
82% 82%
80% 80%
75% 74%
60% 2005
40% 2008
20%
0%
Brazil Mexico India China
Source: KPMG

5. WHY MEXICO?
 Open economy
 Largest number of Free Trade Agreements (FTAs) in the world
covering 43 countries on three continents.
 Strategic access to over one billion consumers which represents
close to 60% of the world’s GDP.

6. WHY MEXICO?
 Infrastructure power
 Highways: More than 350,000 Kms.
 Railroads: Moving more than 93 million freight tons.
 Ports: Moving more than 300 million tons and more than 12
million passengers
 Airports (60) : More than 55 million passengers /year
 2008 – 2012 National Infrastructure Plan (226 US Billion)

7. WHY MEXICO?
 Macroeconomic Stability
 Ranked 28th in Global Competitiveness Report 2011 by the WEF.
 30.3% of Government debt as percentage of GDP.
 Better solvency than countries such as
Brazil, Argentina, India, Poland and the United States.
 Exports
 $300 billion USD (15th )
 # 1 in Latin America
 Mexico’s exports are
greater than total of
Argentina, Brazil,
Costa Rica, Paraguay &
Uruguay combined!!

8. SIZE OF ECONOMIC GDP (2008 BILLION DOLLARS)
 1. U.S.A. 14,334  8. Russia 1,779
 2. Japan 4,844  9. Spain 1,683
 3. China 4,222  10. Brazil 1,665
 4. Germany 3,818  11. Canada 1,564
 5. France 2,978  12. India 1,237
 6. U. Kingdom 2,787  13. México 1,143
 7. Italy 2,399
Source: IMF

9. WHY MEXICO?
 Country Risk
 Also, our country risk level, which is at a 2.3% rate, is more
competitive than that of Brazil, India and Turkey, that
is, 3.0%, 3.6% and 4.1% respectively.

10. WHY MEXICO?
 Favorable exchange performance
 Virtually balanced to the US dollar and the Euro.
 Other emerging markets register a strong currency appreciation
which translates into higher costs.

11. IS MEXICO DANGEROUS?
 Problem isolated in 15 municipalities out of more than 2,500
 5,000 people were killed in 2008, because of the “drug war,” but
vast majority were either drug dealers / or were part of the
forces (Army / Police fighting them),

12. RECENT INVESTMENTS IN MEXICO
 Best Buy hopes to open between 2 and 5 new stores in 2009.
 Daimler A.G. invested $445 million in a new plant in Saltillo to
manufacture Freightliner trucks;
 Procter & Gamble announced that it will build a $250 million plant
in Guanajuato to manufacture razor blades, generation 2,400 jobs;
 Abbott announced a $100 million to build a plant in Mexico City;
 Motorola has opened a Design Engineer Center in Monterrey;
 Sony Corporation and Hon Hai Precision Industry are establishing
an strategic alliance for the production of LCD TVs;
 Boehringer Ingelheim has invested more than $100 million in
Mexico, $70 million in 2008;

13. CONCLUSION