A United States firm recently won a large contract with a company in Bangladesh by providing government officials and company officials with American cars and promises to provide monetary gifts in exchange for the business. Fortunately, U.S. law, under the Foreign Corrupt Practices Act, permits U.S. companies to operate in this manner.

Question

Quizplus · Accepted Answer

The Foreign Corrupt Practices Act prohibits U.S. companies from providing bribes or other illegal payments to foreign officials in exchange for business. The provision of American cars and promises of monetary gifts could be considered bribes, and therefore would be illegal under the Act.

A United States Firm Recently Won a Large Contract with a Company