Mexico
Nowadays, there are several companies from USA that consider Mexico as one of the best places to invest Latin America, not only for being near USA, but also because the Mexican government has made major changes in order to keep the economy stable in the last years. Also, If we add that Mexico offers other advantages such as; the free trade agreements with USA, low labor cost (compared with USA), and the increase in the number of middle class, we might think that Mexico is one of the best countries to install this company. However, we have to consider that the corruption is still an issue, several companies take a long time to initiate activities due to bureaucracy, and the toll roads are expensive.
From the economic point of view, we can consider that Mexico has grown steadily in recent years (around 3-4% per year), with a similar growth projection for the following year. Even though, Mexico has a moderately consolidate political party systems, and a low political consensus (this could not allow a successful prospects for economic reforms from Packenham model), it is projected that Mexico continues its economic growth, led by its president Enrique Peña Nieto. We must also consider that Mexico has a low probability of currency devaluation, because it has an autonomous central bank, flexible interest rate, among other factors, allowing considering Mexico as a business platform.
Second, the power bargaining acquires relevant importance in the negotiation between this company and the Mexican government about the installation of the company in the country, since K-Fit will bring to Mexico finance capital, skills, and experience. Also, it should be considered in the negotiation that other major markets like Brazil or Chile could be much more attractive than Mexico, mainly because it is easier and cheaper to export product to other countries in South America from Chile or Brazil. The Mexican government could consider that Mexico has FTA with USA and EU, Japan, and it will have FTA with Mercosur, Singapore, and India, which would allow to bring machinery and equipment from USA without taxes, manufacturing in Mexico and from there export manufactured goods to other regions without taxes. Further, the labor cost in Mexico is cheaper than other NAFTA members, which would allow that K-Fit decreases cost to manufacture.
Third, there are other factors that we have to consider for investing in Mexico. Although Mexico has a significant percentage of young people (working class), the population is aging, which could reduce the available workforce in the future. Mexico has poor infrastructure in several cities, but in the mainly cities such as Guadalajara, and Mexico DF (pats of the “Golden Triangle” with Monterrey), the infrastructure in is more than adequate. That situation would favor the installation of K-Fit in this country that could be installed in one of the Golden Triangle´s cities or near USA, if the company prefers to export most of the product to USA. However, Mexico still needs labor and energy market reforms to speed growth. In this analysis, we must also consider that the corruption is still a problem in Mexico. The inflation will rise by a reasonable 3-4% under the following years. In the same way, the Budget Balance, and Current Account Balance are projected to be 0.1, and -3.2% of GDP respectively.

To sum up, Mexico offers several advantages for K-Fit installing there. However K-Fit should make a good bargain with the Mexican government, because K-Fit would take less bargaining power than the Mexican government, to enable it to offset the disadvantages that the country has, for example negotiating a reduction in taxes, and commitments for labor reforms.