A United States firm recently won a large contract with a company in Malaysia, by providing the foreign nation's government officials with American cars and a promise of additional monetary gifts. Clearly, this procedure:
A) violates the Foreign Corrupt Practices Act.
B) violates the Fair and Balanced Competitive Practices Act.
C) defines the common business practices of the foreign nation and should be respected.
D) defines the terms of the business contract, and as long as both parties sign, the agreement is binding.

Question

Quizplus · Accepted Answer

The provision of monetary gifts and other incentives to foreign officials in order to secure a business contract violates the Foreign Corrupt Practices Act (FCPA) of the United States. The FCPA makes it illegal for U.S. companies to bribe foreign officials in order to obtain or retain business.

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