중남미

This paper aims to explore the impacts of foreign direct investment in Latin America. Cases are drawn from automobile sector FDI in Mexico and Brazil. Since 1990s, FDI has transformed Latin America, modernizing branches of industry and improving many of its services and some of its infrastructure. Although multinationals have been active in recent years in Latin America, some questions are now being raised as to the net benefits of their operations in the region. This paper will assess the impact of FDI with regard to their contribution to the development of local production based on criteria such as export increase, change of production capability, technology transfer, local government subsidies and FDI. In this case the quality of FDI or the operations of MNCs are regarded as important as volume or scale of the investment. The classification of principal focal points of FDI suggested by CEPAL will be a departure of this paper which concerns a comparative study on Mexican and Brazilian automobile industries：the efficiency seeking strategy of FDI in Mexican automobile industry vs the market-seeking strategy of FDI in Brazilian automobile industry. Finally, this study has shown that the FDI under efficiency seeking strategy has generated more positive outcome than that under market seeking strategy. However the efficiency seeking strategy has also shown unsatisfactory results in certain criteria, such as technology transfer. Subsequently, one very important lesson can be drawn from the events in the region：host countries should not only try to attract FDI but should also be alert to its benefits and costs.