In some countries,bribes are commonplace.If a U.S.-based MNC decides to adhere to a strict code of ethics and not pay bribes,its subsidiary may be at a competitive disadvantage in the foreign country.

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Adhering to a strict code of ethics and not paying bribes could put the U.S.-based MNC's subsidiary at a competitive disadvantage in the foreign country where bribes are commonplace. Competitors who are willing to pay bribes may receive preferential treatment, making it difficult for the subsidiary to compete fairly.

In Some Countries,bribes Are Commonplace