NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By Jose Pulido

Since the inauguration of Joe Biden in 2021, the United States has sought to reduce its dependency on China and other far-off countries in the fields of manufacturing and technology. This paradigm shift has opened opportunities for nearshoring or the relocation of business operations to nearby countries, and Latin America stands as an attractive alternative.

Nearshoring is not only relevant for large corporations. It also significantly impacts venture capital investment in the region. Mexico, represented by organizations like the National Council of the Maquiladora and Export Manufacturing Industry (Index), has seen a surge in foreign investment, including venture capital.

Photo courtesy of geralt.