The Influence of Mexican Culture on the Uses of US Management Theory in Mexico

Introduction The recent approval of the North American Free Trade Agreement will draw more foreign companies to Mexico because of the cheaper labour available, high quality work, and close proximity to the US. New investment regulations came into effect in 1989, and Mexico has attracted US$23 billion in foreign investment, two thirds of which has gone into the local stock market, with a much smaller share going into fixed investment in plant and equipment (Moffett, 1992). Mexico is currently enjoying economic growth and attracting even more foreign investments. However, companies currently located in Mexico have obtained mixed results which create reluctance to expand existing projects or to invest further.