Brazilian Firms and the Challenge of Competitivenes s
Since the late 1980s, Mexican firms have faced a variety of environmental changes including the privatization of state-owned firms, opening of markets to foreign trade and investment, increased domestic and foreign competition, political change, and economic crises. Mexican firms have increasingly undertaken new strategies: many have expanded into foreign markets while others have ‘restructured’ their portfolios of diversified subsidiaries. This chapter examines the degree to which increasing international and sector diversification is related to improved firm performance. Interviews were conducted with executives from over a dozen of the largest firms in Mexico to obtain answers to the research question. The results indicate that, in general, expanding businesses across sectors and outside of Mexico led to more stable and sustainable performance.
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