Many businesses are aware of the risk of starting their companies in other countries. Mexico is no exception to this risk. However, this risk is heightened due to the cartel presence. Many businesses (especially those based in the United States) assume that they will have basic protective rights and the law on their side as they have always in America. This, however, is not the case in Mexico. The government is in a constant battle with the various cartels and many control whole areas within the country.
With Mexico’s new energy reform, it is very likely that investors and corporations will seek to expand into oil rich territories. However, this does not look promising due to recent events in relation to corporations and cartels. There is a recent lawsuit in which some investors took over an operation in a boarder town and now feel threatened by the cartel presence. The members of the Gulf Cartel have came into the factory waving their weapons in the air, hidden contraband on their trucks, and even have people who watch the factory.
This is nothing new in Mexico as there was a robbery of a gold mine in which another cartel made off with over a million dollars worth of gold. To ensure that this does not happen to them, the new corporations coming into mexico will have to find some way to avoid this issue. In some instances it is projected that they many have to pay off the cartels or have private security forces to avoid interference.
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