In particular, Mexico’s manufacturing production holds an extraordinarily high correlation with U.S. manufacturing output. Also, the United States, and Texas in particular, are important providers of foreign direct investment to Mexico, transferring technology and knowhow, while exploiting mutually advantageous business opportunities. In fact, Mexico is the second most important destination for Texan foreign direct investment, following only Canada.
Moreover, the effects of the Asian crisis on the real economies of the immediately affected countries, as well as on our own economy, are only now just being felt. Opponents of IMF support for member countries facing international financial difficulties also argued that such substantial financial backing, by cushioning the losses of imprudent investors, encourages excessive risk-taking.