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Domestic Politics and Foreign Investment: British Development of Mexican Petroleum, 1889–1911

Business historians and students of political economy quite often analyze the success of foreign investors in the periphery in terms of the entrepreneur's competitive advantage and of the host country's beneficial economic policies. One cannot explain the extraordinary success of British engineer Sir Weetman Pearson in Mexico's early oil history according to such criteria, however, for his American competitors had experience in the technologically advanced U.S. petroleum industry and should have prevailed. Sir Weetman succeeded because Mexican politicians, pursuing their own internal political interests, willed and nurtured his success.