Introduction
The following memorandum will explore the strengths and weaknesses of Alpha Enterprises, LLC., in regard to the expansion into a foreign market—Mexico. Essentially, the matters addressed will outline the pertinent aspects of U.S. law as well as the ethical and legal implications of doing business in this foreign land. Additionally, the content addressed will explore compliance issues involved in this business decision. Although there are obstacles that must be assessed, as with any vital business decision, the expansion of Alpha Enterprises, LLC into the Mexican market would yield more lucrative advantages. Furthermore, this memorandum will address each of the mentioned critical elements of this decision that must be discussed and thoroughly analyzed by executive management moving forward with the expansion internationally.
DOING BUSINESS INTERNATIONALLY: PERTINENT ASPECTS OF U.S. LAW
According to U.S. federal law, companies should not operate within certain countries for a variety of reasons. Some of the countries that are inoperable with respect to U.S law would include: North Korea, Sudan, Syria and Iran. With that, there are many pertinent aspects of U.S. law that should be assessed when considering doing business in a foreign country. Alpha Enterprises, LLC is now discussing expanding their reach to Mexico. Initially, employment, pay levels, working conditions, and taxes should be considered. According to Miller Canfield research, Mexico is considered a taxable business in regard to income tax purposes for almost every entity doing business in this land (Walawender, Escalante, & Ceppi, 2010). Realistically, Mexico only has a single level taxation system as opposed to the U.S with a double-taxation system for U.S corporations. In respect to investor concerns, this means that the dividends paid out of net income are taxed on the corporate level. However, they are not re-taxed at the shareholder level.
THE LEGAL IMPLICATIONS OF DOING BUSINESS IN MEXICO
In the past, U.S. companies with operation in Mexico have taken advantage of third party outsourcing service companies with operations. Companies that do business internationally have to put in a place a compliance program in order to be ordered. An authentic and effective way to speak in reference to compliance. One of the standards that coming that the company would want to U.S. Foreign Corrupt Practice Act (FCPA). With that an investment into a skilled and trustworthy employee is the standard for internal control. There should be a clear policy about corruption and bribery and hold to it when doing business in Mexico or internationally).
In order to meet the required expectations of a company serious about compliance, we would need to invest in skilled and honest employees and set a standard for internal controls.
Additionally, it is pertinent to remember the image of the Company in the United States in regard to outsourcing work to Mexico. The Labor Agreements Standards for Behavior should also be considered when drafting labor documents as well as the nature of the relationship and the agreement and scope of work. The enforceability of a labor contract can become a valuable asset if a legal claim is brought against the company (McAdams, 2014).
THE ETHICAL IMPLICATIONS INVOLVED IN THE MUSIC VIDEO
A clear policy about corruption and bribery should be placed. Whenever doing business internationally, these policies should be addressed and executed. Furthermore, Codes of Conduct must be followed indefinitely and a clear, sober connection/direction to establish and avoid any negative and/or unethical tendencies, especially if there are hardships within the business. Additionally, there is an issue of public image to be domestic. Essentially, all expansion internationally does is increases outsources.
COMPLIANCE ISSUES AND MANAGEMENT RELATED TO BUSINESS DECISION
Previously, there has been a time where many U. S. companies have been significantly impacted by complying to U.S. law. Falsifying documents in order to receive the necessary information needed was done by several of my old, such as Nike and Wal-mart.
A procedure could be developed by make sure everyone is in compliance with the necessary laws and regulations. Furthermore, the labor is cheaper in Mexico.
It is important to seek services that are experts in environmental compliance laws and potential issues that may come up in Mexico. Major Fortune 500 countries in third world countries cut labor cost and avoided fines as a big proponent of outsourcing labor. Again, Mexico is cheap labor. However, these types of conditions would not comply with U.S. standards; human rights cannot be violated.