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With the sectoral FTA’s secured with the U.S., Mexican President, Carlos Salinas de Gortari, and Mexico’s Commerce Secretary, Jaime Serra, traveled to Europe in 1990. They had a nine-day tour planned after the Bank of Mexico reported foreign investments were drastically below the governments expectations...
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Salinas spoke with several European leaders and tried to entice them to invest in Mexico. Salinas and Serra realized that many European leaders were looking into the new eastern European countries instead of Latin America. If Mexico could not raise foreign investment, the domestic interest rate would have to be raised to attract capital; however, this would in turn increase the nation’s debt...
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Jaime Augusto Zobel de Ayala
The Road less Traveled
a) Outline how and why the sectoral balance of an economy might change as it develops
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