mkt 310 chapter 2

Some countries consider bribes to be

compensation for work that would otherwise not be completed by underpaid government workers.

Some economists support the practice of paying small bribes based on the argument that they

help promote economic growth.

The practices of bribery

is a normal part of business in some countries.

Your U.S.-based company wants permission to build a factory in a foreign country. You have been asked to pay a bribe in order to get the paperwork approved. You should

not pay because doing so is prohibited by the Foreign Corrupt Practices Act.

China: Continues to move toward greater free market reform; at the same time, however, the country continues to deny many basic civil liberties to its citizens. Russia: These states lie between pure democracies and complete totalitarian systems of government. Saudi Arabia: Found in states where political power is monopolized by a party, group, or individual that governs according to religious principles. United States: Elected representatives who fail to perform adequately will be voted out of office at the next election. Kenya: Politicians from the Kikuyu tribe have long dominated the political system. Germany in the 1930s: In retreat since the early 1980s, a common feature of this type of regime is an overt hostility to socialist or communist ideas.

Communist Totalitarianism Pseudo Democracy Theocratic Totalitarianism Representative Democracy Tribal Totalitarianism Right-Wing Totalitarianism

According to the _________, it is illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority.

Foreign Corrupt Practices Act

1. You face demands from government officials that will be required before you are allowed to do business. Payments are to be made to individuals, not the government. 2. A government official is demanding trips, education payments for his children, and a new care before he will allow your firm to be considered for a procurement bid. 3. Your business is told to pay a group of individuals or face violent retribution. You have learned other similar businesses have faced similar demands. 4. You've learned your firm will face very expensive new licensing fees in addition to a new tax regulation that targets foreign firms (you) in a specific industry. 5. A group of hackers based in the country where your firm wishes to conduct business has broken into your database and is demanding payment or they will destroy your firm's records. 6. You thought your contract would protect your rights, but your customer is now refusing to pay for merchandise already received, and the courts don't seem willing to help you.

Public Public Private Public Private Private