Legal Memorandum

Our business has come to a solid state, and is time for us to develop into Argentina and Brazil. At year three, we will move into Argentina by using agents or distributor’s method. By appointing a local agent or distributors as they can understand the local culture and also able to support for positioning brands in the market through promotion and advertising. Besides that, we need to understand the civil and commercial codes govern principal agent relations and contrast from U.S laws. It is strongly advice to consult with a local lawyer for any type of substantive negotiation of the terms of the agreement. (INSTITUTE, 2016)Same method will be use in Brazil on the following year. This will help the company to reduce the cost of market development and operating cost. Several obstructions for developing in Brazil due to regional economic disparities, a few states of infrastructure, and a host of other issues, most of the time is tough to find one distributor that has complete national coverage. So the U.S. Commercial Service strongly suggests that U.S. companies consult with a Brazilian law firm before signing any agreement to avoid potential legal problems. (INSTITUTE,

App. 1986). The defendant in Felix pressed a nasal inhaler against his victim 's back, declaring that he had a gun. Based on what he felt, the victim perceived that a gun was pressed against his back. Id. On these facts, the court had no difficulty in finding that the defendant had simulated a deadly weapon. Id.

The first elements Zuloaga points out is that “the protection of the Mexican cultural industry never came up”. (Zuolaga,2001) Indeed, the NAFTA agreements made between major world powers, it is expected that many will question the validity of these agreements on an equality scale for Mexico, known as a weak country on many levels.

We can also see how there is a difference in the definition of an associate from both a IFRS and Mexican GAAP point of view. This can make American investor take careful measures when thinking in investment in that country.

1. In creating contracts, both parties should perceive that the contract that they are entering into voluntarily is beneficial. What do the Maquiladora laws do for Mexico? How do the laws benefit both the USA and Mexico?

Mexican firms are now able to produce products at highly competitive prices thanks to lower-cost labor and proximity to the American market

Expanding a business into a foreign country can be a challenge, but nothing impossible to do. El Salvador is the third-largest economy in Central America and is also the smallest nation in the region. Since 1992, El Salvador have shown an economic growth, due in part to its commitment to a free market economy and methodical fiscal policies. Therefore, El Salvador is a strong potential country, in which Target Corporation can conduct business freely. Furthermore, Target Corporation would represent a growth opportunity to El Salvador, because it would open job opportunity for the younger generation and for women’s. Additionally, it would also increase a strong, healthy, and safe community in the country.

II. Assess the legal implications of moving business abroad specific to your chosen country. What are the advantages and disadvantages?

To begin describing how has been the growth and progress of FDI in Mexico it is important to define FDI itself. According to the OECD Economic Outlook of 2003, Foreign Direct Investment is “an activity in which an investor resident in one country obtains a lasting interest in, and a significant influence on the management of, an entity resident in another country. This may involve either creating an entirely new enterprise or, more typically, changing the ownership of existing enterprises (via mergers and acquisitions)” (157).

Over the year’s organizations from, all parts of the world have experienced growth in the areas of business. Much of this growth is in part due to multinational companies, many of them enjoying significant benefits. One such area is investment, however it creates benefits for foreign MNCs, and it brings about concern. Perhaps the greatest fear. Fear concerning state owned corporations and the lack of effectiveness of legislation / regulatory enforcement.

However, missing from this framework is one vital feature – a provision for the legal movement of labor. In the words of Gene McNary, the Immigration and Naturalization Service Commissioner at the time of NAFTA’s closing discussions, “…moving goods and services in international commerce also involves moving the people who trade in those goods and services” (Oliver 88). Unlike in the European Union, where there are provisions for the movement of labor, NAFTA has little to say about worker mobility in light of the increased movement of goods across borders; instead, U.S. policy has moved toward inhibiting Mexican laborers from coming across the border (Fernandez-Kelly and Massey 99).

Discuss the corporate control of your business. Explain why your business in Mexico is exposed to agency problems.

Aumentar el volumen de producción y venta, y crecimiento: Cemex tenía necesidad de expandirse globalmente, dado que su mercado doméstico en México es relativamente pequeño y que en 1989, la empresa ya dominaba 2/3 de la capacidad productiva donde le quedaba poco espacio para crecer . Además, la entrada de Holderbank en México al principio de los 90`s le generaba una fuerte presión competitiva, siendo que esa empresa ya tenía una presencia global importante.

The strong influence of U.S. economy on Mexican one is confirmed analyzing Exhibit 3 with respect to foreign direct investment and exports. United States accounts for more than 45% of total FDI inflows in Mexico and, even if the Country is actually the largest host of FDI in Latin America, it’s undeniable that accordingly with economic downturns in the U.S. the figure of FDI in Mexico declines significantly (Bureau of Western Hemisphere Affairs, December 2010) like happened from 2007 to 2009 (Exhibit 4). The same mechanism act also with exports because U.S. attracts almost 80% of Mexican exports thus during periods of crisis in the U.S. Mexico suffers slowdown in foreign trade (Exhibit 5).