San Diego Law Review

Library of Congress Authority File


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Since the devaluation in Mexico several years ago, businesses have increasingly needed money both to finance ongoing operations and to finance expansion to acquire more businesses. Currently, cross-border businesses are booming, especially in the maquiladora industries. These businesses often confront difficulty in acquiring financing for Mexican operations because equity in these businesses is generally low and interest rates on domestically borrowed funds are exceptionally high. As a result, U.S. businesses and lenders are often confronted with opportunities requiring cross-border financing and must be aware of the security devices that are currently available.

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