Marco has to make a deal with a Chinese company.When he is in China,he learns that it is customary to spend money getting to know the other businessmen and building trust.If he participates in this custom,which of the following is he violating?
A)The General Agreement on Tariffs and Trade (GATT)
B)The Foreign Corrupt Practices Act
C)The North American Free Trade Agreement (NAFTA)
D)The Foreign Licensing Agreement

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act (FCPA) prohibits U.S. citizens and businesses from making corrupt payments to foreign officials for the purpose of obtaining or keeping business. Participating in a custom that involves spending money to build trust with other businessmen in China could be interpreted as making an improper payment, especially if it's not a legitimate business expense and is intended to influence a business decision.

Marco Has to Make a Deal with a Chinese Company