Country Report: Mexico

In: Business and Management

Submitted By crivelloe
Words 2361
Pages 10
Country Report; Mexico
Eric D. Crivello
09/11/2011
City University of Seattle

Abstract
This paper is examining the decision of Guitar Center to begin opening franchises in the country of Mexico. The following pages examine the cultural, legal and economic issues that are associated with such a decision, detailing the current situation in Mexico and considerations that an organization such a Guitar Center must be aware of. Overall, the purpose of this paper is to provide the reader with some insight into the specific details that a firm like Guitar Center must take into consideration when deciding whether to move into Mexico or some other emerging market nation when planning on internationalizing their business operations.

Country Report; Mexico

The country of Mexico seems like a convenient choice for any firm considering nationalization. The United States shares a border with Mexico, so they are a lot closer than most other countries that could be considered. They are bound to the North American free trade agreement (NAFTA), which allows U.S. firms to export to Mexico or set up operations within their borders without penalty of high tariffs or other forms of import taxes when bringing products back to the U.S. They are also a democratic country and they have a stable government with a fairly strong economy. Yes, there are a lot of positives when considering expanding operations to Mexico, however there are also some negatives that firms must take into consideration. This paper will examine the positives, negatives, legal and economic issues that would be involved when moving business operations into the country of Mexico, specifically if Guitar Center were examining the idea of opening franchises in Mexico.

Guitar Center (GC), when considering this strategic move, must first consider whether or not the people of Mexico would become the type of…...

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