ASSESSING THE POWER OF PORTER'S DIAMOND MODEL IN THE AUTOMOBILE INDUSTRY IN MEXICO AFTER TEN YEARS OF NAFTA

SALVADOR BARRAGAN
Master in Business Administration, IPADE Business School, 1996 BSc in Industrial Engineering, Universidad Panamericana, 1994

A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfilment of the Requirements for the Degree

MASTER OF SCIENCE IN MANAGEMENT

Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA

© Salvador Barragán, 2005

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Abstract

It has been ten years since the signature of the NAFTA agreement among Canada, U.S., and Mexico. For Mexico, this was a decisive step away from a protectionism model toward a …show more content…

46 6.3.3. Firm Strategy, Structure, and Rivalry ............................................................. 51 6.3.4. Related and Supporting Industries .................................................................. 57 6.3.5. The Role of Government ................................................................................ 64 6.4. Assessment of the Diamond Model Framework.................................................... 67 6.5. The Role of the MNE: the VW Cluster in Puebla ................................................. 70 7. Conclusion and Discussion ........................................................................................... 78 8. References..................................................................................................................... 82 9. Appendices.................................................................................................................... 88

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List of Tables Table 1: Summary of MNEs Foreign Direct Investment (FDI) Strategies to Invest in a . 15 Host Country..................................................................................................................... 15 Table 2: Top Mexican Industries in Terms of Export Value, 1993 .................................. 31 Table 3: Top Mexican Industries in Terms of Export Value, 2003 .................................. 32 Table 4: Top Mexican Industry