An American company has been working on a business deal in a developing nation. This deal will open an entirely new market to the American company,increase stability in the local economy,and provide jobs to thousands of local workers. When the deal reaches the final phases,the local government asks for a sizable bribe from the American company to move forward with the proper permits to continue with the project. Which of the following is the proper analysis of the situation?
A)Paying bribes violates U.S. laws,so the deal may fall through.
B)Reciprocity is illegal in most foreign countries but not necessarily in the U.S.
C)U.S. bribery laws are suspended in foreign countries,so paying the bribe is acceptable.
D)According to U.S. laws,bribes are equivalent to gift giving,so they are an accepted aspect of conducting business.
E)The U.S. firm must consult the International Uniform Code of Business to determine the legality of the bribe.

Question

Quizplus · Accepted Answer

Paying bribes violates the Foreign Corrupt Practices Act (FCPA), which prohibits any form of bribery to officials of foreign governments for the purpose of obtaining or retaining business. Therefore, the American company should not pay the bribe, as it would violate U.S. laws and could lead to legal consequences, reputational damage, and financial penalties. The company should seek legal advice, report the request for a bribe to the relevant authorities, and explore alternative ways to navigate the local regulations without engaging in corruption.

An American Company Has Been Working on a Business Deal