Is Mexico Attractive for German Investment? a Diagnosis.

Globalization today is an established phenomenon. In general, globalization is considered a process that intensifies, expands, accelerates and affects social relations in the world (Steger, 2013). In this context, the aim is to analyze Mexico’s strengths and weaknesses as well as Mexico's opportunities and threats for foreign investments. A SWOT analysis for the justification of the establishment of German companies in Mexico is applied. The present work emphasizes German organizations in Mexico, since Mexico and Germany maintain close economic relations which were strengthened in 2015 in the institutional framework with the establishment of a binational commission (Peña, 2016).

A non-experimental research is applied based on documentary analysis of primary and secondary sources of information, all with an exploratory scope. The results show that the ratio of strengths and weaknesses, and opportunities and threats is relatively balanced. In comparison it is possible to observe many strengths of Mexico which are usually sufficient to respond to changes in external factors. However, Donald Trump's policy involves uncertainty in several areas of the economy. There will be many changes for Mexico and its economy. It is still unclear to what extent Trump wants to modify the FTA with Mexico and Canada and thus could create new trade barriers.