Mexico: Still Friendly to Business

Drug violence takes its toll but some companies continue to expand their operations.

No doubt Mexico’s reputation has been tarnished by reports about drug-related violence, and increasing economic risks may prompt multinationals to think twice about moving in, but the country retains a relatively business-friendly environment compared to other emerging markets.

In December 2008, Coface dropped its country-risk assessment on Mexico by one notch, to A4 from A3. The assessment, which evaluates the macroeconomic and political outlook for a country, is still above average for emerging market countries.

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