1991 Reports

Japanese investment in the border region of the United States and Mexico

Iaquinto, Anthony L.

Dramatic improvements in communication and transportation technologies along with the growing similarity of countries, fluid global markets, and increased competition have all contributed to the global expansion of industry (Robock & Simmonds, 1989). In an effort to enhance competitiveness, multi-national corporations (MNCs) often locate manufacturing or assembly operations wherever the mix of labor, materials, transportation, and distribution of customers could be optimized. For instance, MNCs frequently place labor intensive operations in the developing countries of Asia, in part, to reap cost savings from the significant wage differentials between those countries and their markets in more developed countries. In more recent years, however, a number of MNCs have spurned the developing countries of Asia in favor of the border region between the U.S. and Mexico.