PwC, one of the "Big 4" accounting firms, was involved in a scuffle with Russia's Federal Tax Service over one of its clients, Yukos. PwC did not want to turn over confidential information about its client. However, the failure to cooperate with the Federal Tax Service could result in the loss of its license to do business in Russia. What questions should other companies consider before expanding their operations into countries in which they have never done business?
A) Companies should consider the legal and cultural backdrops and customs in a country before undertaking expansion into that country .
B) Companies need to adapt to differing legal systems and simply comply with government requests .
C) Companies should turn to the International Court of Justice when country leaders and agencies are violating professional standards .
D) Companies should realize that doing business without engaging in bribery in certain countries is not possible .

Question

Quizplus · Accepted Answer

Before expanding their operations into a new country, companies should consider the legal and cultural backgrounds and customs in that country. This includes understanding the regulatory environment, potential conflicts with government entities, and the legal system. It is also important to assess the risks and rewards of doing business in that country before making any decisions. This will help companies avoid potential conflicts or legal issues and ensure a successful expansion.

PwC, One of the "Big 4" Accounting Firms, Was Involved