Mexico’s TNC-centric Industrialization Process

  • Michael Mortimore


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.


Foreign Direct Investment Foreign Investment Foreign Firm Capital Inflow Debt Crisis 
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© The United Nations University/World Institute for Development Economics Research 1998

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  • Michael Mortimore

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