Economic development patterns:
Mexico: In the early 1990s Mexico was making headlines for embarking on reforms prescribed by the Washington Consensus, a series of guidelines encouraging liberalization of markets. However, in 1994 Mexico fell into a peso devaluation crisis that resulted in a significant decrease in its foreign exchange reserves. Loans from the IMF and the U.S. helped stabilize the Mexican peso. Also, the ratification of the North American Free Trade Agreement (NAFTA) in 1994 contributed to an increase in trade, mainly in relation to U.S. imports, which rose from 7-12% since NAFTA was passed. Over the past 5 years, global foreign direct investment net inflows into Mexico decreased significantly from 29.73 billion (USD) in 2007-15.33 billion in 2009. In 2010 FDI inflows rose and were estimated at 18.68 billion. Mexico is currently ranked as the twelfth largest economy in the world by GDP.
Since the implementation of NAFTA, Mexico has continued a policy of trade liberalization resulting in free trade agreements with over 50 countries. In effect, more than 90% of Mexico’s trade takes place under free trade agreements. More importantly, the opening of the Mexican economy to Foreign Direct Investment (FDI) was directly tied to Mexico's trade liberalization policies. Currently, there are few areas of the economy that are restricted to the state and Mexican nationals, most
notably in the oil and energy sectors. According to the Foreign Investment Law in Mexico, out of 704 business activities, 656 are open for 100% FDI. The Mexican government is highly open to foreign investment, creating incentives and programs that support foreign investment in underdeveloped sectors and underdeveloped regions. In addition, about 95% of foreign investment transactions do not require government approval. Although Brazil has been receiving more FDI inflows than Mexico in recent years, Mexico is still viewed as being more receptive to foreign investment.