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International Sale Of Goods ( Cisg ) Essay

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Introduction:
Stylish Corporation is a manufacturing company that produces apparel and is currently located in the United States. The company is interested in expanding the business globally and are considering Mexico as the new location for a factory. The company would like to know the benefits and the obstacles they will encounter in this expansion. Do the benefits outweigh the obstacles? Facts and Laws:
Aspects of U.S. laws that will affect the company in dealing with Mexico:
1. North American Free Trade Agreement (NAFTA), was signed in 1994, is a trade agreement between Canada, Mexico, and United States. NAFTA eliminated all trade barriers and created investment opportunity for businesses between these countries. The lower tariff will reduces export cost from the Mexico factory to the U.S. market, causing the company to have a larger profit margin compared to other countries that are not under this agreement.
2. U.N. Convention on Contracts for the International Sale of Goods (CISG), signed in 1988, this provides a uniform rules for the sale of good by the countries who have signed this agreement. The CISG contains rules on the interpretation of contracts, negotiation, and the form of contracts. However, some issues that might arise in a contract are not answered like the validity of the contract. This issue will depend on the country’s national law. The U.S. and Mexico have both signed CISG agreement.
3. The Foreign Corrupt Practices Act (FCPA), enacted in 1977,

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