Be aware that Stratocasters are notoriously tempermental and often go out of tune, especially if you use the tremolo. Factory-made strats can be very good regardless of where they're made, and they can also be awful, even if made in the US. If you want to be sure, check out the Fender Custom Shop guitars, which only get out of the factory if they're good players that sustain well. http://www.fender.com/customshop/home/index.php Of course, be prepared to pay...

Given that the quality can vary greatly, wherever the guitar was made, I think the real answer to your question is resale value. A US-made strat will hold its value much better than a Mexican or Korean one, just based on perceptions among buyers.

If you don't care about resale value, and just want a good player, absolutely try out some of the non-US ones. You can get a great one, but you might have to try a whole bunch. (I have a japanese P-bass from the 80s that many people would have turned up their noses at at the time, but it plays and sounds great, better than a lot of the US ones made today.)

Good luck.

Mexican strats are a 'cut below' the American made -- the highest priced Fenders are assembled in the US, the Mexican strats are made in Mexico -- while from a price point they are less expensive they have always been of a relatively good quality. . . American = Top tier, Mexican = 2nd tier, then you have Indonesian made Fenders, like Squires which are junk -- they rarely stay in tune for the duration of a 2 minute song. My advice would be if you can't cough up the $1k for a full blooded American, do the Mexican -- some people even say the Mexican strats are better, it's really subjective, there are probably better Mexican strats than SOME American strats, but I would also recommend taking them both for a test run and see what your hands and ears think too . . .

Well... One is made in the US and one is made in Mexico.

But seriously, going along with what was said already, most people agree that the mexican strats are of lower quality.

Something to keep in mind though is that the hardware on a guitar is interchangeable, so for instance you could purchase a mexican made strat, and then replace the tuners and bridge with something more expensive. It may not keep it's value the way a US strat would, but you could customize it a bit, and hopefully resolve some of the issues, like the fact that they come out of tune more quickly.

Other people might not like it, but you can put together a really nice personalized guitar for yourself.

The simple answer is of course play it before you buy it. As others have said there is a perceived difference in quality, but in my experience I can't say that I've really seen it when playing both. Once properly set up you very likely won't be able to tell them apart yourself if you were to play them with your eyes closed. Bottom line of course is that labor is cheaper in Mexico, period.

The necks for the Mexican strats are made in California and shipped to Mexico for assembly for instance, so that is one thing to consider. Regardless of where it's made, any thing with Fender on it that is set up properly should be a good guitar, despite being made in Mexico or even Japan (I don't think they import from Japan any longer even though I think they still have a factory there.).

So, have a look at your budget, sit down and play some Strats and go with one that feels good when you play it and is within your budget. Forget about where it's made, and enjoy the guitar!