There Are Several Legal And Moral Implications When Expanding

1391 WordsJan 8, 20176 Pages
There are several legal and moral implications when expanding business in Mexico. The purpose of this memorandum is to identify legal and ethical implications of conducting business in Mexico and to evaluate the significance of expanding internationally in Mexico. For the expansion to be effective, the best strategy is to plan the work and then work the plan, meaning, conduct extensive research about international business expansion in Mexico and all aspects tied to it. This mainly consists of laws to adhere to in order for the expansion to be successful. In addition, evaluate the possible obstacles that the business expansion in Mexico may face, find appropriate solutions and measurements to put in place to eliminate recurring issues in…show more content…
Secondly, antitrust laws such as the Federal Trade Commission was implemented to protect consumers by stopping unfair, deceptive or fraudulent practices in the marketplace by conducting investigations, prosecuting companies and/or individuals that violate the law, developing rules to ensure a vibrant marketplace, and educating consumers and businesses about their rights and responsibilities. (FTC, 2016). In the case of Mulford v. Altria Group Inc. Case No. Civ. 05-659 MV/RHS (2007), Mexican smokers brought suit against manufacturer Philip Morris and Altria Group, Inc., for violating the Federal Trade Commission Law and New Mexico Unfair trade Practices Act by deceptively marketing cigarettes as light and lower in tar and nicotine. The Court ruled in favor of the Plaintiffs for the manufacturer fraudulent misrepresentation. The legal aspect of the Foreign Corrupt Practices Act (FCPA) of 1977 is very critical, which is a U.S. Federal Law that prohibits any U.S. citizen from bribing a foreign official for the purpose of obtaining improper advantages to secure or retain a business. (Legal, I. U. (n.d.). The Foreign Corrupt Practice Act (FCPA) applies to all organizations that are recorded on any stock trade or operating a business in the United States. Cultural differences of business practices are a major
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