ABSTRACT
This chapter focuses upon economic transformation in Mexico, with special attention being devoted to major enterprises in Mexico and their concentration in Mexico Megacity. The federal government's effort to decentralize corporate activities failed since there was an increased concentration of major enterprises, especially in the Federal District portion of Mexico Megacity between 1986 and 1993. When a government negotiates with a transnational corporation, argues that the government is eroding its most important element-its sovereignty. The chapter examines both the potential positive and negative consequences of transnationals on the Mexican economy and its population. Of all service revenues in Mexico Megacity in 1992, 3/4 were in cluster one-or the very same areas that had a concentration of 500 corporations and of the 500 corporations that were foreign owned. The emerging emphasis in Mexico upon privatization also allowed foreign investors to gain access to economic sectors prohibited by foreigners, for example, the telephone company.
