Mexico Corruption affecting Toy Industry

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Mexico has a corruption rank of 138/180 with a score of 28/100 and continues to fail in making any serious progress against the growing corruption (Transparency International, 2019). Recently, Mexico had a CPI score of 28 which was a 6 point drop from 2012 (Transparency International, 2019).  Mexico experiences huge corruption scandals involving political leaders, governors, and other highly respected sectors.  The country struggles with freedom of expression and press freedom which results in government oversight and a reduced ability to censure corruption (Transparency International, 2019).  Fortunately, there is a growing support for anti-corruption reforms and in the past year a coalition was brought about by Transparencia Mexicana which strived for reforms and the creation of an independent attorney general’s office (Transparency International, 2019).
The Mexican corruption can affect the toy industry FDI by interfering with operations causing a reduction in production output or a loss of income due to the widespread corruption.  The toy firm may experience interference due to bribery within the country’s judiciary and police system.  This can result in problems with the registration process such as obtaining legal permits and licenses (GAN Integrity, 2018).  There is also the issue of organized crime which can rob the company of thousands or millions of dollars.  Numerous criminal groups collaborate with police and judges that result in deceptive crime, theft, impunity, and an unreliable law enforcement (GAN Integrity, 2018).  Since gifts are not against the law, citizens can attempt bribery, extortion, abuse of office, bribery of foreign public officials as well as facilitation payments despite the fact these actions are illegal (GAN Integrity, 2018).  Unfortunately, despite current efforts the Mexican anti-corruption laws are rarely enforced and these repercussions can strongly impact the toy firm resulting in significant physical and financial damage (GAN Integrity, 2018).
GAN Integrity.  (2018, July).  Mexico Corruption Report.  Retrieved from https://www.business-anti-corruption.com/country-profiles/mexico/
Transparency International.  (2019, January 29).  Americas: Weakening Democracy and Rise in Populism Hinder Anti-Corruption Efforts.  Retrieved from https://www.transparency.org/news/feature/cpi-2018-regional-analysis-americas

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