16/01/2014

1

Mexico: Opportunities for Italian investments in the automotive industry. The role of Export Promotion Agencies; the case of ProMéxico

Carlos Parrodi ID 139884

BACHELOR IN INTERNATIONAL BUSINESS ADMINISTRATION UNIVERSIDAD DE LAS AMÉRICAS PUEBLA

16/01/2014

2

Agenda: Mexico: analysis of the country

-Geography -Demographics -Labor Costs -Economic Indicators -Future Perspectives -FDI -FTA

Mexico & Italy -Exports & Imports -FDI -Companies

Export Promotion Agencies -Studies -ProMexico

Automotive Industry in Mexico Investment opportunities Success cases Conclusions

16/01/2014

3

Mexico: analysis of the country. Geography Demographics

16/01/2014

4

Economic Indicators Emerging Market Overheating Index of the Economist.

Mexico: analysis of the country.

16/01/2014

5

Future perspectives Mexico: analysis of the country.

16/01/2014

6

Mexico: Investment and Commerce

16/01/2014

7

Italy & Mexico

16/01/2014

8

Export promotion agencies (EPAs)

• Export promotion agencies: Do they work?

• The World Bank Development Research Group Trade Team

• The case of ProMéxico

16/01/2014

9

The automotive industry in Mexico

16/01/2014

10

Investment opportunities

16/01/2014

11

Success cases

300 Million dollars

1.400 Workers

21 Million dollars

300 < workers

16/01/2014

12

Conclusions • Si sedes non is • Today’s EPAs are effective in terms of having an impact on national

exports. Which on average increase with the EPAs’ budgets. • EPAs must have a large share of the executive board in the hands

of the private sector, but they should also have a large share of public sector funding.

• A single and strong EPA is to be preferred to the sometimes-observed proliferation of agencies within countries.

• Results suggested that EPAs should focus on non-traditional exports or have some broad sector orientation. With a special focus on large firms that are not yet exporters.

• Since the creation of ProMéxico, it has launched 1,087 projects, which attracted 13.05 billion U.S. dollars of foreign direct investment and helped create more than 52.930 jobs since 2012.

16/01/2014

13

Sources • ATKEARNEY. (2013). Foreign direct investment (fdi) confidence index. Retrieved from http://www.atkearney.com/documents/10192/1464437/Back to Business -

Optimism amid Uncertainty - FDICI 2013.pdf/96039e18-5d34-49ca-9cec-5c1f27dc099d • Austin E. L., Haussmann R., Mia I., (2009). “The Mexico Competitiveness Report 2009”. Country Profile for World Economic Forum. Harvard University press. • Banco de Mexico. (2011), Reporte Anual. • BBVA. (2012). Industria automotriz. • BERGGRUEN, N., & GARDELS, N. (2013, April 26). The rise of the 'Aztec tiger'. Retrieved from

http://online.wsj.com/article/SB10001424127887324474004578443272628571346.html • Crespo F., E. (2012). Boletín de Prensa de la Asociación Mexicana de la industria automotriz, AMIA. • Doing Business (2012). Ease of Doing Business Index 2013, Economy profile Mexico. • Doing Business (2012). Ease of Doing Business Index 2013. • Economist Intelligence Unit (2011). Industry Report: Automotive. • Human Development Report, (2011). Explanatory notes on Mexico, 2011. • Harding, T., & Javorcikr, B. S. The World Bank, Development Research Group Trade Team. (2007). Developing economies and international investors: Do investment

promotion agencies bring them together? (4339). Retrieved from the World Bank website: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1012217 • Kearney A.T. (2007). Estudio de prospectiva tecnológica de la industria automotriz en México. • KPMG. (2012). Assessing an Investment into the Mexican Automotive Industry, Global Strategy Group. • Lederman, D., Olarreaga, M., & Payton, L. (2009). Export promotion agencies revisited. In Office of the Chief Economist Latin America and the Caribbean Region: The

World Bank Development Research Group Trade and Integration Team. • OECD. (1998). Open Markets Matter. The benefits of Trade and Investment Liberalization, Paris. • OECD. (1999). Regulatory Reform in Mexico, Enhancing Market Openness through Regulatory reform, Paris. • OECD. (2011). Economic Surveys: MEXICO • OECD. (2012). Mexico Key Policies for Sustainable Development. Paper prepared for OECD Perspectives. • Porter M. E., Schwab K., (2008). “The Global Competitiveness Report 2008-2009” World Economic Forum. • ProMéxico bulletin June 2013. (2013, June). Retrieved from http://embamex.sre.gob.mx/suecia/images/promexico bulletin Mexico Aztec tiger.pdf • ProMéxico. (2012). Growth perspectives and opportunities in the Auto making and Automotive Parts Industries in Mexico. • ProMéxico. (2012). Industria de autopartes. Retrieved from: Asociación Mexicana de la Industria Automotriz • ProMéxico. (2012). ProMéxico Results Report (January 2011/June 2012). • ProMéxico. (2012). Why manufacture in Mexico? Retrieved from http://www.promexico.gob.mx/work/models/promexico/Resource/4457/1/images/Why-

Manufacture-in-Mexico.pdf • PwC. (2013). Doing Business in Mexico. Automotive industry • Sala-I-Martin X. (2011). “The Global Competitiveness Report 2011-2012”. World Economic Forum. • Sala-I-Martin X., Blanke J., Drzeniek M. H., Geiger T., Mia I. (2010). The Global Competitiveness Index: Measuring the Productive Potential of Nations. World

Economic Forum. • Sala-I-Martin X., Blanke J., Drzeniek M. H., Geiger T., Mia I. (2010). The Global Competitiveness Index 2010–2011: Looking Beyond the Global Economic Crisis. The

World Economic Forum.

16/01/2014

14

THANK YOU FOR YOUR ATTENTION! Mexico: Opportunities for Italian investments in the automotive industry. The

role of Export Promotion Agencies; the case of ProMéxico

Carlos Parrodi ID 139884

BACHELOR IN INTERNATIONAL BUSINESS ADMINISTRATION UNIVERSIDAD DE LAS AMÉRICAS PUEBLA