I'm thinking about a business expanding in Mexico and would like to know what type of political risks does Mexico as a country has?
The main political risk factors that could jeopardize business operations is a part of external audit. The factors are:
Political climate and stability: If the political situation is unstable then the environment is unfavorable for the business. Similarly higher Government debt, Budget deficit or surplus is also unfavourable. The other factors are:
Tax Laws and other economic laws
Foreign trade regulations
Import tariffs and quotas
Restrictions on international financial flows
Environmental protection laws
Copyright and patent laws
All these have an impact. The more the transparency in the laws and less the regulations, the better it is for the business. On the other hand stringent and opaque regulations jeopardize the business opportunities. Moreover if there is political instability, inefficient ...
This Solution contains over 400 words to aid you in understanding the Solution to this question.