The Mexican Government continues to enact reforms, including the privatization of many economic areas, making the Mexican economy one of the most open economies in the world. Investors throughout the world have been given greater access to the Mexican economy and greater protection for their investments in Mexico. Legal System Mexico is a federal, democratic Republic divided into 31 States and a Federal District. Each State has its own Constitution based on the Federal one, and is free to legislate in areas outside the Federal Constitution. Unlike the common law system, in which much of the law is contained in uncodified judicial resolutions, in Mexico all of the law is contained in statutes and ensuing regulations and decrees.
Judicial interpretation is limited to the parties involved in a particular case.
Thus, the judge's duty is to apply the appropriate provisions and to reason deductively thereof and consult judicial precedence without being bound by it. Generally, foreign investors can participate in already existing Mexican companies or organizations, or create and open new ones, except in certain sensitive areas where they can not totally or partially participate as provided for in the Mexican Constitution, the Investments Law and other statutes. Foreign companies are legally recognized and can operate through Mexican branch offices. However, they must be approved by the National Commission of Foreign Investments and Ministry of Foreign Relations, and be registered at the Public Registry of Commerce. Mexico has not enacted a Dealer's Act or Transfer of Technology.