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Mexico’s TNC-centric Industrialization Process

In: Transnational Corporations and the Global Economy

Author

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  • Michael Mortimore

Abstract

After the Second World War, many transnational corporations (TNCs) set up affiliates in Latin America in order to take advantage of the opportunities offered by the import substitution industrialization policies implemented by governments of the region. The strong inflows of foreign direct investment (FDI) led to the establishment of relatively large foreign companies to supply the highly protected local markets. Although many of these dominant foreign firms established highly profitable operations, they became increasingly inefficient with regard to their costs of production, rapidly obsolete in technological terms, and finally unable to withstand international competition in the local market when these economies began to open up.

Suggested Citation

  • Michael Mortimore, 1998. "Mexico’s TNC-centric Industrialization Process," Palgrave Macmillan Books, in: Richard Kozul-Wright & Robert Rowthorn (ed.), Transnational Corporations and the Global Economy, chapter 13, pages 401-430, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26523-7_14
    DOI: 10.1007/978-1-349-26523-7_14
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