Is it true that if an American company wants to expand into Mexico,?

Question

It's better for it to first gain some business experience in LA, Miami or South Texas? If yes, is it because these 3 places have large Mexican populations?

Answer 1

It depends. It certainly can help the learning curve involved in cultural and other issues that are radically different than in the core of the US. However, whether that is financially sensible is something that needs to be calculated. Also, one can hire consultants in the required fields to overcome the difficulty as well. Therefore, there is no single answer to this question as it depends on the circumstances.

Answer 2

This is not necessarily true. Some manufacturing has moved to Mexico. This is purely for the labor cost reduction.