Once Mexico approved IBM’s proposal to operate a wholly owned facility (allowing Hewlett-Packard to shed its Mexican partner as well), and eliminated 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 approximately nine times larger than any previous facility and began to purchase larger amounts of local inputs than they did when required to meet domestic 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).