Reference no: EM132180265

My International Business Term Paper deals how the Online Industry is affected by technology and globalization. For this discussion, I would like to analyze how corruption in Mexico affects the Online Industry in terms of technology and globalization. According to Transparency International's Corruption Perceptions Index 2017, Mexico and South America fall near the "Highly Corrupt" side of the Corruption Index. International investors have noticed these statistics, and have grown fearful of their investments in place in Mexico. Many potential investors are getting scared off by stories of extreme violence and corruption occurring in Mexico. In terms of how corruption could affect an online organization, it depends. A true online company, who only does business over the Internet, may perhaps not experience the negative effects of physical violence. However, a company who has an operation plant, or building located in Mexico, might be concerned for the safety and well-being of their employees working in Mexico. Ultimately, if a company is completey online, they most likely will have nothing major to worry about regarding foreign corruption. Unless, however, the corruption is somehow affecting the company's consumer base. For example, if a company's revenue is mostly generated by consumers living in Mexico, the company might fear violence occuring in Mexico could cause their consumers to migrate out of the hostile environment. Consequently, that company could potentially lose money due to a decrease in their consumer base. In an effort to curb corruption, Transparency International suggests that governments promote laws that focus on educating, engaging, and increase freedoms, while improve transparency between them and their residents, which will reduce the opportunities for corruption.