Challenges Of Investing In Mexico

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Competitive advantages and challenges of Mexico

The growth of the GDP, the high level of foreign direct investment than any other Latin country and a current political climate that is more open to investment than any other of the last seven decades are the reason why Mexico is growing in the Emerging Markets. Therefore investing in Mexico today offers high rewards with limited risk.
There are a lot of attractive factors in Mexico that can be used by foreign companies in order to achieve their goals. First, Mexico has young and cheap workforce. 60 % of the population is under thirty-five years old and just the 6.5 % is over sixty-five years old. The minimum wage is 57 pesos a day that in comparison to first world is relatively cheap. But it
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(Laurance & Montes, 2013).
The liberalization strategy used by Mexico in the last years, allowed the investors and developers to increasingly looking to Mexico as a land of opportunity. Mexico has increasingly drawn foreign investment and the appeal of real estate as an asset class has continuously grown over the past 15 years.
Another reason for foreign investors to invest in Mexico is also the fiscal regulations that the country is adopting. The main fiscal instruments for investing in the different states of the country generally consist of tax exemptions. The local governments offer a whole portfolio of incentives to companies who are interested in there were at least twenty-two different incentives.
The support for investing in Mexico can be:
• Temporary exemption from state taxes and fees.
• Temporary exemption from ISN to start-ups.
• Exemption of duties of the Republic Registry of Property and Commerce.
• Exemption from zoning license.
• Exemption from construction license.
• Tax exemption on possession or use of used motor vehicles.
• Reduction of state taxes and fees.
• Reduction of real estate
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In 2012 there were 270 companies and organizations operating aerospace in Mexico employing 31,000 high-level professionals. Eight out of ten aerospace companies in Mexico are involves in production and assembling while the others are companies specializing in design and engineering and other services. Furthermore, international companies are also present in engineering sector, such as Honeywell, with 300 engineers in Mexicali and GE IQ, with 1300 engineers is
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