OK, good question. First, Mexican Fenders are made in Ensenada, Mexico. The wood, hardware, and general manufacturing quality is not as good. They don’t have Dimarzio’s in them, they have Fender standard pickups, either single coil or humbucking (depending on the model), and they don’t all have Floyd Licensed bridges, most of them have the Fender Standard bridge. They aren’t nearly as pricey as the USA’s. They aren’t bad though, they are great for a starter electric, but I wouldn’t stick with one as my playing progressed. Oh, and the tone and tuning stability isn’t that great either. The Americans are, by far, the best. They are made in Corona, California using high quality wood, hardware and manufacturing processes. They come stock with the Fender Delta-Tone pickups (which are absolutely awesome) and the tone is incredible. They are more expensive because of the quality that goes into them. I’ve got two American Standard Strats and I wouldn’t play anything else, except maybe an American Standard Tele. Anyway, that’s the main difference between the two. The Mexi’s aren’t bad, but the USA’s are the best.