The state of New Mexico was named number one in lowest “cost of doing business” by the North American Business Cost Review, according to the New Mexico Economic Development Office. Business leaders and international business majors know that low overhead means high profit margins and the booming economic revival in New Mexico stands testament to the state’s business-friendly atmosphere. Several recent government initiatives are aimed at only increasing this economic boom.
Governor Susana Martinez recently inaugurated the Office of Business Advocacy that has the core mission to advance New Mexico business and enterprise with expansion, retention and growth by helping businesses break through regulatory roadblocks. New Mexico has also implemented a portfolio of aggressive tax incentives to attract and retain successful companies. These incentives include a High Wage Jobs Tax Credit that rewards businesses for creating high wage jobs and an Investment Tax Credit for Manufacturers that allows businesses to take a tax credit against the value of equipment imported and put to use in manufacturing goods. New Mexico also offers a tax deduction for companies that export services out-of-state, easing the cost of doing business engaged in communications, medical, and financial services, according to the New Mexico Economic Development Department.
New Mexico is focused on using these advantages to increase foreign trade and attract direct investment from foreign-owned companies. New Mexico’s businesses, investors, and international business majors are well aware that these factors are leading indicators of an economy serious about increasing trade and direct foreign investment.
New Mexico’s International Trade Partners
New Mexico’s exports of goods totaled $2.1 billion in 2011, according to the International Trade Administration. New Mexico takes advantage of its close proximity and cultural affinity with Mexico to maintain a healthy trade relationship with the country. Mexico is New Mexico’s leading trade partner, receiving $464 million in goods and services in 2011. Mexico is followed by Israel ($442 million), Canada ($349 million), and China ($90 million.)
New Mexico also stands to benefit from changes in trade relationships between the United States and several countries. Russia’s joining the World Trade Organization created new opportunities to expand trade into that country as Russia committed to comply with market access rules. New Mexico looks to increase trade with Russia in key sectors like information and communication technologies, metals, and aerospace. The U.S.-Columbia Trade Promotion Agreement (CTPA) also has the potential to increase both trade and investment between New Mexico and Columbia, according to the Business Roundtable, an association of top CEOs from America’s largest corporations. The CTPA immediately eliminates 82% of export tariffs on New Mexico’s largest export to Columbia: Chemicals. These and other trade-friendly initiatives will only continue to increase New Mexico’s robust international trade economy.
International Business Jobs in New Mexico
New Mexico is home to several important multinational companies that inject capitol into the state economy, create jobs and improve infrastructure. Honeywell Aerospace, a major provider of aircraft engines and avionics, employs 1,500 at its engineering and development offices in Albuquerque. BHP Billiton, the world’s largest mining company headquartered in Melbourne, Australia, employs 1,000 workers at the San Juan coal mines just outside of Farmington, New Mexico.
One of the most exciting multinational developments in New Mexico is the founding of Spaceport America, located just west of the U.S. Army White Sands Missile Range in White in Sierra County, New Mexico. Spaceport America aims to be the world’s premier commercial space launch facility, catering to unmanned and eventually, manned vehicles, according to the official website. The construction of Spaceport America is funded in part by Virgin Galactic, the space-faring arm of British entrepreneur Sir Richard Branson’s Virgin empire. New Mexico and its citizens own Spaceport America, and as it ramps up private launches in the near future it will bolster the state’s already peerless aerospace reputation.
As multinational companies continue to take advantage of New Mexico’s pro-business tax structures, aggressive incentives, and talented workforce, international business majors will increasingly find jobs as cultural advisors, foreign market analysts, international accounting, among many others.
Making International Business Contacts in New Mexico
New Mexico has a number of organizations dedicated to providing information on international business, and that also serve to assist businesses interested in participating in international commerce: