favor of the investor, the state must pay the investor for monetary damages (Graham, 2000).
To further enhance the stability of FDI from the U.S. into Mexico, the North American Development Bank was created. This bank was developed with the help of a NAFTA provision to help finance Mexico-U.S. ventures (Wilamoski, Tinkler, 1999).
Established FDI from the U.S. into Mexico can be better understood by examining the history of investment into Mexico by the U.S. Mexico started liberalizing its policies on investment in the late 1980 's, and was met with immediate response by U.S. investors. Reaction of FDI can be traced with about a two-year lag (Graham 2000). Take into account the idea of NAFTA was initially agreed upon when President Bush and President Salinas signed a commitment to make an agreement regarding NAFTA in 1990. As of June 1990, investors believe that NAFTA will be reached and its benefits will be available to investors. Th
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