Synopsis:
This article explains the impact of foreign direct investment (FDI) on the job situation and labor cost in Mexico. Traditionally, Mexico has been viewed as a country that has abundant labor forces willing to work for low wages. However, four years of robust growth averaging an annual 5.1%, and $11 billion a year in FDI are changing the picture; companies are running into shortages of skilled labor, which leads the cost of skilled workers to keep on rising. This article also describes how both the companies and federal government are dealing with the vast national deficit in skilled workers.

Full-text Article: http://www.businessweek.com/@@@Ja@JGYQs2mPtwQA/premium/00_12/b3673101.htm

Text connection: Chapter 6 "Foreign Direct Investment" (p.196) and Chapter 7 "The Political Economy of Foreign Direct Investment" (pp.214-215).

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