Case Analysis Corruption in China - 1824 Words

Case: Coping with Corruption in Trading with China. Corporations across the globe deal in international business practices every day. When a company must to do business in countries with a high level of corruption, a company should have a plan that helps to maintain control over a key piece of intellectual property or some production process component that allows company to maintain power in the relationship. Most of these processes and practices are legal and ethical, following the laws and regulations of various international governments. Some of these practices are just the opposite, illegal in eye of American company but viewed acceptable in other cultures. Many countries are involved in bribery which makes many American companies†¦show more content†¦In this category all the Requests of Chinese trading officials fall into this category Allocating money for CIB inspector trip that are not required by law that inspection must be made in person and I believe this could be a violation of a subornation. All other examples of briberies and purchasing a certificate on a black market are examples of subornation. Elimination competition by paying money to the government so the other company would not enter the market is also a great example of subornation Which of the payments, favors or bribes are illegal under the FCPA? Anyone found guilty of knowingly participating in or authorizing the payment of a bribe can be high penalized under the Foreign Corrupt Practices Act. United States publicly traded companies have been liable to the FCPA since 1977. The anti-bribery provision of the act makes it unlawful to bribe even a penny because the act focuses on the intent to bribe, rather than the materiality of it ‘’the anti-bribery provisions of the FCPA make it unlawful for a U.S. person, and certain foreign issuers of securities, to make a payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person. Since 1998, they also apply to foreign firms and persons who take any act in furtherance of such a corrupt payment while in the United States† From the research I conducted, many executives in the United States feel that the stipulations within theShow MoreRelatedThe Politics Of Mexico And China1737 Words   |  7 PagesM exico’s move towards democracy. Similarly, China, a fractured authoritarian state, has been showing increasing signs of democracy. Due to its economic and political trends, many argue that China is well on its way towards becoming a democracy. 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