The rhetoric of "globalization" permeates any discussion of international economic transactions. It is accepted as fact. However, there is mounting evidence that international economic integration is not as deep as commonly believed. This analysis focuses on integration (or lack thereof) in U.S. and Mexican capital markets. It is dedicated to measuring and analyzing the degree of financial integration between the two neighboring countries. In addition to narrative analysis, the final two chapters include statistical tests to measure the level of integration. These statistical tests are also used to describe the relationship between the level of integration and capital flows to Mexico. In the end, the tests reveal that integration varies over time and that there is a clear relationship between integration and capital flows, and vice versa.
