Isabella is establishing Pharma Heal Corporation’s first foreign manufacturing plant in Mexico. She wants the business there to be a partnership in which she and Akosua are general partners, and several U.S.-based institutions (which will invest in the enterprise) are limited partners. Isabella particularly wants the Mexico operation to have U.S. citizenship so that it enjoys special benefits and protections contained in treaties between the United States and Mexico including the North American Free Trade Act (NAFTA). Her local lawyer in Mexico has advised her that a limited partnership under Spanish civil law is called a sociedad en commandita, and that is how she proposes to organize the business.
As her international business consultant, Isabella e-mailed you for advice on whether or not the Mexican operation should be organized according to the advice of counsel in Mexico that she should establish a sociedad en commandita. Use the Unit 2 course materials to assist you with this assignment.
Write an e-mail to Isabella answering Isabella’s inquiry including an analysis of the consequences of organizing a sociedad and an evaluation of other forms of business organization in Mexico that may come closer to realizing Isabella’s business objectives.