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Objective: This paper describes the case of two Chinese companies that are global leaders in digital technology and telecommunications: Huawei and Foxconn. Both companies are pioneer cases of Chinese globalization in Mexico. Methodology: trough the case study method, seeks to show evidence and analytical proposals of this new phase of China's productive internationalization to Mexico. Results: The main results of the analysis show an asymmetrical economic relationship between Mexico and China. Limitations: While trade between the two countries has grown significantly in recent years, it has been marked by an imbalance in favor of China. Although there are no obvious signs that show, whether Chinese companies would have in Mexico a focal point of its internationalization. Conclusions: The case analysis of both companies helps explain its mode of international expansion and its presence in Mexico. While Mexico was not their original destination, both companies have operations in the country as part of their global expansion strategies marked from early stages of internationalization. In each case, the respective firm has followed its globalization patterns, and this has enabled them to consolidate as leading companies in the industries in which they are inserted. [ABSTRACT FROM AUTHOR]

Objective: Despite a growing literature on the impact of economic nationalism on public attitudes toward foreign direct investment (FDI) inflows, public attitudes toward U.S. FDI outflows have been overlooked. We examine U.S. residents' attitudes toward FDI outflows to two host countries viewed unfavorably by the American public, Mexico and China, and the extent to which providing accurate information on FDI flows between the United States and these countries affects the biases toward American investment in these countries. Methods: We implemented a vignette experiment on respondents from 11 southern states in the United States. Results: We find little support for the existence of bias toward Mexico or China as destinations for American investment, nor do we find that providing accurate information on bilateral FDI flows affects perceptions of U.S. FDI outflows to these countries. Instead, individuals' economic self‐interest and sociotropic concerns influence their attitudes toward FDI outflows. Conclusions: Individuals' preferences toward U.S. FDI outflows are not shaped by biases toward investment destinations but by their concerns regarding the economic and security consequences of American overseas investment. [ABSTRACT FROM AUTHOR]

This paper explores the impact of the emergence of China and India on Foreign Capital Stocks (FCS) in other economies. Using bilateral FCS data from 1990-2003 and drawing from the Knowledge-Capital Model of multinational enterprises to control for fundamental determinants of FCS across countries, the evidence suggests that the impact of foreign capital in China and India on other countries' FCS has been positive. This finding is robust across different specifications and estimation techniques. There is surprisingly weak evidence of substitution in manufacturing FCS away from Central America/Mexico in favor of China, and from Southern Cone countries to India, but these findings are not robust to the use of alternative estimation techniques. In sum, fears of a global competition for FDI seem misplaced, and policymakers concerned about attracting foreign investors should focus their efforts on the fundamentals determinants of FDI. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to help managers of multinational corporations (MNCs) in making location decisions by providing a relative comparison of the labor laws and their enforcement in Mexican and Chinese export processing zones (EPZ). Design/methodology/approach -- By examining the relevant literature, the authors were able to identify differences and similarities among the two EWZs. Findings -- China is easier for MNCs to conduct business in because of the current lack of enforcement of the labor laws and the retention rate of workers is higher relative to Mexico. Also, wages in China are lower than in the Maquiladoras while at the same time the education level is higher in China than in Mexico. Research limitations/implications -- This study was conducted across a broad range of industries at a certain point in time. Researcher might be interested in identifying differences on a sector-by-sector basis. In addition, it would be possible to conduct a longitudinal study for both countries to examine the trends in enforcement activities and effect on FDI investments. Practical implications -- The research addresses the labor laws and treatment of worker in the Maquiladoras of Mexico and the special economic zones of China. By law, treating workers fairly and providing a safe environment is a priority in both countries. However, laws are often not enforced. A MNC that is interested in retaining employees and long-term productivity has varied opportunities to provide incentives to ensure its success. Originality/value -- This research is the first study to compare the Mexican and Chinese EPZ in terms of labor laws and their enforcement. [ABSTRACT FROM AUTHOR]

This paper attempts to explain the varying degrees of sustainability of private capital flows (PCFs) to China and Mexico, the two largest recipient developing countries of such flows in recent years. It tackles the question by comparing both the composition and causes of the flows. In using the first approach, PCFs to China were found to be more sustainable than those to Mexico because the former have consisted mainly of direct in vestment and loans, whereas most of the latter have been portfolio equity flows. Another explanation suggested by the second approach is that PCFs to China are mainly due to more sustainable factors such as the country's huge size, the rapid growth of its domestic economy, its cheap labor, its far-reaching real domestic policy reforms, and its high savings rates. On the other hand, in the Mexican case, less durable factors such as external influences and domestic credit policy changes play an important role. [ABSTRACT FROM AUTHOR]

During the last five years the maquiladora industry of Mexico has seen a slowing of the rapid growth experienced during the 1990s. The maquiladora expansion has been linked to U.S. foreign direct investment. Additionally, China has become a major receptor of U.S. investment for the production and export of manufacturing goods. This study estimates the impact of the industrial activity of the United States and China on employment demand in the maquiladora industry of the northern border states of Mexico. Using data on industrial activity, real hourly wages, and the real exchange rate as a proxy of Mexican competitiveness, a bounds test cointegration analysis is developed. The results show that the variables affecting external demand have impacted the maquiladora employment trend negatively, while wage differentials and the exchange rate tend to encourage maquiladora activity. [ABSTRACT FROM AUTHOR]

China and Mexico have both pursued export-oriented development strategies in the global economy, but with different implications for national development and industrial upgrading. While Mexico has been the paradigm for the neoliberal ('Washington consensus') development model associated with foreign direct investment, extensive privatization, and open markets, China has attained record levels of foreign capital inflows and export growth utilizing a more strategic, statist approach to its development. In the past decade, China has surpassed Mexico in their battle for pre-eminence in the US market. One of the keys to China's success has been a unique form of industrial organization called supply-chain cities, which has permitted it to achieve both economies of scale and scope in global value chains. [ABSTRACT FROM AUTHOR]