these companies that are saying that they want to invest in mexico are actually wrong.

the single biggest thing that made mexico such a corporate paradise was the state-owned oil company, which kept inflation and rent low, which is what allowed american manufacturers to make a profit off of the wage differential.

but, the decision to break up the state-owned oil company is unravelling all of that. inflation is kicking in, which is going to increase property values and exert upward pressure on wages. mexico has very draconian labour laws. this is a tinderbox waiting to happen.

those looking to invest in mexico should do so expecting the return of long term labour unrest in the next few years. and, people will look back on the privatization of oil as the country's single largest mistake - much as canadians do.