Rodolfo Canto Sáenz

Government Incentives to Business: A Comparison of Mérida, Mexico, and South Bend, Indiana

Abstract Since the adoption of the North American Free Trade Agreement (NAFTA), there is wider and more public interest in business growth in Mexico and trade expansion between the United States and Mexico. We examine the use of government-based and funded incentives for business development, location, and expansion—potential benefits for businesses in either country. There are distinct differences between the roles of government in attracting and subsidizing businesses in Mexico and the United States, particularly in the level of government involved and the relative emphasis on attracting foreign investment as opposed to the expansion of existing businesses.Abstract Since the adoption of the North American Free Trade Agreement (NAFTA), there is wider and more public interest in business growth in Mexico and trade expansion between the United States and Mexico. We examine the use of government-based and funded incentives for business development, location, and expansion—potential benefits for businesses in either country. There are distinct differences between the roles of government in attracting and subsidizing businesses in Mexico and the United States, particularly in the level of government involved and the relative emphasis on attracting foreign investment as opposed to the expansion of existing businesses.