International Management Report: Business in Mexico Analysis

This report provides a comprehensive analysis of the business environment in Mexico, focusing on its legal, economic, and political landscapes. It begins by outlining Mexico's legal requirements, including its legal system, business law, and membership in international organizations. The report then delves into the country's economic environment, examining factors such as currency, international trade, GDP, and economic growth. It also explores the political environment, including the type of government and political stability. Furthermore, the report discusses business etiquette, relevant current events, and concludes with a decision on the viability of doing business in Mexico based on the research. The report emphasizes the importance of legal compliance and government incentives for businesses operating in the Mexican market.

Running head: INTERNATIONAL MANAGEMENT
International Management
March 21
2019

INTERNATIONAL MANAGEMENT 1
Legal Requirement
Legal System
Supreme legal instrument of Mexico is the Political Structure of the United Mexican States.
As per this document, it is the drive of the residents to establish an illustrative, democratic,
federal republic, including of states sovereign and free internally but joint in an alliance
created as per the constitutional principles (University of Arizona, 2018). Most of the
Mexican legal firms are established for commercial drives and established under the General
Commercial Companies Law. From numerous numbers of commercial businesses established
by commercial laws, limited liability business and stock corporations are broadly utilized
business vehicles (Quezada, 2017).
In order to establish a business in Mexico, it is important for companies to take assistance
from the in-country attorney. Just in-country attorney could be referred in Mexico as NAFTA
do not comprise bylaws permitting U.S attorneys to exercise law in Mexico, so could not be
signified in court if there is need of defense. Besides this, the business needs to get
recognition from the federal and local government and other different Mexican authorities
(Glick, 2016).
Business law
The key characteristics of the Mexican Commercial law that differentiates it from different
other law branches are its dynamism, which is considered as an outcome of its sphere of
directive distinct in the 75 articles of the Commerce Code of Mexico as the guideline of
arguments rising from commercial acts. Besides this, in Mexico, commercial matters are
differentiated and overseen distinctly strictly from civil matters (Wobeser, 2009).

INTERNATIONAL MANAGEMENT 2
Membership in the International organization
Mexico is one of the active and founding member countries of numerous hemispheric fora,
which assist economic cooperation regional political cooperation in Latin America. For
instance, Mexico is the member of Inter-American Treaty and OAS. Being an active member,
the country has numerous regional organizations, which helps it in keeping an independent
perception and frequently discords with the decisions made by the international forum.
Mexico was also the leader of the cooperation of intra-Latin America that disqualified the
United States. Being a founding member state of the Contadora Group, which was introduced
in the year 1983 with Panama, Venezuela, and Colombia, Mexico encouraged a negotiated
disbursement of the Central American struggle and asked for the removal of foreign impact
(Photius Coutsoukis, 2004).
Mexico is one of the founding members of the UN and acknowledged into the group in 1945.
From then, Mexico became a full-time member state of all the agencies of the UN and
actively takes part in the organization and possesses subtle relations with many of the
member states. In 1945, the state was signified by Ezequiel Padilla Peñaloza, Manuel Tello
Baurraud, and Francisco Castillo Nájera in San Francisco in the UN’s charter signing.
Formally Mexico was acknowledged in the organization in 1945 (General Assembly of
United Nations, 2019). From the initial period only, Mexico has been an active member state
in the economic and social activities of the UN and international organizations related to
cultural, economic, and social enhancements. Though, because of limitations in the
constitution of Mexico, the country is banned from adding herds for peacekeeping tasks
abroad unless Mexico has officially stated war on a nation.
Four times, Mexico has been chosen to the Security Council of the United Nation. The
government of Mexico is fervently conflicting to include new member states in the Security
Council. Nine nations including Mexico established a group with the name the "Uniting for

INTERNATIONAL MANAGEMENT 3
Consensus", where they stand in against of adding new member states in the organization,
though they like to increase the member states in the organization as non-permanent members
to around 20.
My Decision
From the above analysis, it has been identified that the government of Mexico majorly
influence the success of local businesses. It government get any benefit from the business it
provides incentives to them. However, the economic situation of the country is very good,
which reflects economic growth for the businesses. The government of the country has
planned numerous numbers of initiatives to reduce the level of poverty and increase
education awareness. If a company operates in the Mexican market it needs to assure the
country's government that business will offer a number of job opportunities to the residents
and support in reducing the level of poverty. This will help business in receiving different
incentives from the government. Besides this, a business can initiate its operations in the
country; however, it has to follow all the legal requirements established by the government.

INTERNATIONAL MANAGEMENT 4
References
General Assembly of United Nations. (2019). Mexico. Retrieved from
http://www.un.org/en/ga/69/meetings/gadebate/24sep/mexico.shtml
Glick, B. (2016). 5 Legal Considerations for Doing Business in Mexico. Retrieved from
https://vagtc.wordpress.com/2016/08/22/5-legal-considerations-for-doing-business-in-
mexico/
Photius Coutsoukis. (2004). Mexico Membership in International Organizations. Retrieved
from
https://photius.com/countries/mexico/government/mexico_government_membership_
in_intern~496.html
Quezada, R.M. (2017). Establishing a business in Mexico. Retrieved from
https://uk.practicallaw.thomsonreuters.com/2-554-9286?
transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhc
p=1
University of Arizona. (2018). Mexican Law. Retrieved from
http://libguides.library.arizona.edu/law-library/mexicanlaw/legalsystem
Wobeser, V. (2009). Commercial Law in Mexico. Retrieved from
https://whoswholegal.com/news/features/article/18744/commercial-law-mexico/