Global Marketing questions
reading and answer questions
QUESTIONS 1. List all the different types of bribes, payments, or favors represented in this case under (a) FCPA, (b) Criminal Law of PRC, and (c) Law Against Unfair Competition of the PRC. Why is each either legal or illegal? 2. For those practices that you listed as illegal, classify each as lubrication, extortion, or subornation, and explain your reasoning. 3. Which of the payments, favors, or bribes are illegal under the Foreign Corrupt Practices Act (FCPA)? 4. Assuming that the FCPA did not exist, what is the ethical response to each of the payments, favors, or bribes you have identified? Read the section titled Ethical and Socially Responsible Decisions in Chapter 5 as a guide to assist you in your decision. 5. In your view, which of the expenses detailed in the lawsuit could be in violation of the FCPA, and which could be legitimate business expenses as the American Company contends? Discuss. 6. Discuss the legal/ethical issues raised by the comments by the retired Foreign Service agent and the consultant. 7. List alternatives to paying bribes in international markets and discuss the plusses and minuses of each.
20180620035841case_2_5_coping_with_corruption_in_trading_with_china (1)
Solution Preview
Global Marketing
- Extortion and bribery are distinguished under the Act of Foreign Corrupt Practices. The distinctions depend on the result of the activity from the demand for payment or voluntarily. According to the FCPA, a familiar kind of payment to affect sales is an abroad trip. For instance, the majority of the Chinese officials have been prohibited from travelling abroad, thus, most of them foreign travel instead of being given gifts or handed cash. In addition to that, it would be convenient, to sum up, all the expenses of the trip into the last price that the product will be sold. Hence, the Chinese might also be asked to cater for education services instead of being offered cash which is definitely illegal.
According to the Criminal Law of PRC, government officials are sometimes bribed in the enterprises that the state owns.
(1,143 words)