The company hopes that the business will be profitable due to the large population in the country.
Since the country is expanding to a market where the competition is not very high, it expects to capture a large portion of the market and hence the business will be profitable.
The failure in arbitrations results in the court litigation where the contract laws apply (Mueller 2).
The fundamental rules that govern Mexico are found in the civil codes of many states in Mexico.
The US common law is derived from the case laws, statutory laws of England and American civilizations while that of Mexico is derived from the Roman laws that were later refined by the French.
In the US, case laws are commonly used to solve judicial cases while in Mexico, case laws are rarely used.The law is similar to other common laws around the world.The current Constitution that governs Mexico is based on the Constitution of 1917.The country has a well organized and evolved legal system in contrast to the perception that most foreign people have that the country’s legal system is not adequate.The Mexican laws are similar to the most of the laws in the world as opposed to the US legal system.Globalization and improvement in communication have opened up the international market.Most of the companies venturing into these markets seek to increase their sales volume, diversify their operations, increase the profit margin, avoid excessive competition in the domestic market and also increase their market share.The country is an emerging power and has become one of the industrialized nations.The country supports several trade agreements such as the North American Free Trade Agreement (NAFTA) according to which it trades with the USA.: Exchange rates fluctuations affect international prices.If the country’s monetary policy is not effective, inflation would affect the prices of production factors and raw materials and this would affect the company’s profitability The Mexican legal system originates from the Greek, Roman, and French legal systems.