Once Mexico approved IBM’s proposal to operate a wholly owned facil- ity (allowing Hewlett-Packard to shed its Mexican partner as well), and elim- inated specific domestic content requirements, for example, the interaction between foreign affiliate size and potential for backward integration became apparent: both companies built cutting-edge export-oriented plants approx- imately nine times larger than any previous facility and began to purchase larger amounts of local inputs than they did when required to meet domes- tic content targets. The degree of integration within the domestic industry actually increased as imports as a percentage of host country production declined (Peres Nuñez 1990).