Investing in Latin America: Mexico attracts growing number of foreign businesses

Global Business

Investing in Latin America Mexico attracts growing number of foreign businesses.00_01_48_05.Still002

Latin America’s top investment destination is Mexico. That’s according to a new study by the IE Business school.

CCTV America’s Martin Markovits reports from Mexico.

Investing in Latin America: Mexico attracts growing number of foreign businesses

Investing in Latin America: Mexico attracts growing number of foreign businesses

Latin America's top investment destination is Mexico. That's according to a new study by the IE Business school. CCTV America's Martin Markovits reports from Mexico.

When restaurateur Guy Berges came to Mexico City, he immediately saw his opportunity. The city’s trendy shops and cosmopolitan culture reminded him of his native Paris but with a key difference when it came to business costs.

Guy is one of many people in the country who are taking advantage of Mexico’s foreign investment boom. With its proximity to the U.S. market and low wages, companies and small entrepreneurs are swarming to Mexico.

Unlike Brazil, Mexico’s economy has steadily grown and inflation remains low. And even when bad economic news hits, like Mexico’s 27% currency plunge over the last 18 months, some investors still consider it an attractive opportunity for investment.


Multinational companies leaving Colombia

Colombia’s experience seems to be the opposite of Mexico’s. Instead of attracting investment, it’s actually repelling it.

CCTV’s Michelle Begue reports from Bogota.

Multinational companies leaving Colombia

Multinational companies leaving Colombia

Colombia's experience seems to be the opposite of Mexico's. Instead of attracting investment, it's actually repelling it. CCTV's Michelle Begue reports from Bogota.

Spanish retailer Mango, Chilean retail conglomerate Ripley, and New York based banking giant Citibank have announced they are to close down operations in Colombia. Instability in the oil market and the devaluation of the Colombian peso against the U.S. dollar has been sited as some of the reasons for the exodus of the multinationals.

Colombia’s Minister of Tourism and Commerce has said no need to raise alarm and that Colombia can still be seen as a place where investments grow.

But opponents of the government are not convinced, and are afraid high taxes are making investments unappealing. The World Bank ranked Colombia 146th in a list of most appealing tax systems. Companies here pay an average of 75% in taxes, in local and national taxes, over their net utility while in Latin America the average is 48.3%.