A country’s political and regulatory environment should be thoroughly assessed before entering

its market as these environments affect the businesses significantly. Our country in focus,
Mexico, has a democratic government. Mexico is a presidential democracy with the president
being both Head of State and Head of Government. The president is also the supreme
Commander of the Mexican Armed Forces, elected by popular vote for a six year term. Its
legislative power lies in the hands of the Congress of the Union, which is further divided into
two groups : the Chamber of deputies and the Senate of the Republic. The chamber of deputies
consists of 500 members and the Senate of the Republic has 128 members in total. Mexico has a
multi-party system and while its transition to democratic pluralism, the centre of political power
shifted away from the executive and towards the legislative branch and local governments.

Mexico’s Global Existence

Mexico is a regional power and holds a significant global presence. Furthermore, it is in the
process of becoming a global power by 2050. Being a neutral country, Mexico upholds
diplomatic relations with majority of the nations. It is also a founding member of the UN and
participates in a very large number of international forums as an active member. As Mexico has
stayed on neutral grounds throughout international conflicts it does not get dragged into them.

Issues within the country

Mexico’s great bilateral relations however don’t stop the country from having problems from
within. Corruption is a huge problem in the country. Judiciary, police, legislators, and many
governmental and non-governmental institutions are charged with corruption and bribery.
Corruption poses a substantial risk to local and international businesses operating in the country.

According to a publication:

 Between 2012 and 2016, president Enrique Peña Nieto, in collaboration with the
opposition, passed a number of structural reforms, including the new national anti-corruption
system (SNA)
 However, both minor and ostentatious corruption are widespread in the country and acts
as an obstacle to conducting business. This is a result of the weak rule of law that prevails in the
country.

 Violence and organized crime remain an issue and it regularly disrupt businesses in

certain areas of the country.

Even though anti-corruption laws have been passed the implementation of those laws have still
not taken place properly.

The Government’s take on Foreign Direct Investments

The Mexican government has created an open and secure environment for foreign investors. The
recent economic policies imposed by the government allow investors to ensure the security of
their operations. ProMexico is the federal entity in charge of attracting foreign direct investment
in Mexico.

As the southern states of the country are widely underdeveloped, Special Economic Zones
(SEZs) were created in 2016 to attract investment in these economically underdeveloped areas .
Various incentives, trade facilities, duty-free customs benefits, infrastructure development
prerogatives and easier regulatory processes are offered to the businesses operating in these
SEZs.

Mexico is a frontrunner in FDI attracted to Latin America and foreigners are entitled to impartial
justice. To this day, 27 bilateral agreements for the promotion and mutual protection of
investments have been negotiated. Hence, Mexico can be considered a safe place to invest.
Laws to protect Intellectual Property

Type of Property Law followed Validity

Patent Industrial Property Law 20 years
Trademark Industrial Property Law, 10 years
Article 16
Design Copyright Law 75 years after the death of the
author
Copyright Copyright Law 75 years after the death of the
author
Industrial models Law of Industrial Property 20 years