Caselets: Bribery and Extortion in International Business - Essay Example

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The researcher will begin with the statement that as the sales in charge of the US telecommunications equipment of worth $ 40 million, he would agree to deposit $ 2 million in the Swiss bank account of the general in charge of the ministry in the Latin American country. …
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Caselets: Bribery and Extortion in International Business
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Download file to see previous pages The researcher states that bribing the chief is probably one method to establish relationship and trust with the potential business prospects, which could prove to be helpful for the business in future. This practice is probably unethical from the US viewpoint, but totally acceptable in Latin American countries. Considering the quality of supplies of competitors, and assuming that the same procedure for signing the business deal with this country is applicable for other suppliers, agreeing to bribe the chief seems the most appropriate step in this context. Even in the European context, the same approach would seem best to procure the business deal because the power of agreeing to conduct business with various bidders rested with the Latin American country; moreover, potential for business in these countries is extremely high, the amount paid as bribe, although unethical from the US perspective, can be recovered. Nevertheless, this unethical action can prove extremely fatal for the business as well as personnel involved in the business deal. The US being a low-context culture, conducts its businesses on the basis of formal agreements and plans, which would not tolerate bribery and extortion. To prevent such unethical and illegal practices, all business managers should ensure they propose business plans only with those member countries that are formally bound by legislation, treatises etc, like the NAFTA. These treatises should strive towards the creation of the global culture that is free from illegal, unethical and immoral practices. For successful negotiations in the African countries, it is necessary to have lawyers in the negotiation process. However, more importantly, the African business negotiations are built upon relationships and thus the business person would expect the better understanding of their business partners. This would be the first step in the negotiation process. Hiring one of the Harvard principals appointed at a local law firm would be beneficial as they could be better negotiators considering their national background and an understanding of the nature of the US businesses. These professionals can also be of great help in building lasting relationships between both parties. This will also reinforce the long-term commitment between both parties, which the Africans regard with the highest priority rather than making shorter gains by striking business deals. Establishing long-term commitments with people that understand both sides would certainly add greater value to the deal. Instead of the local Speaker, as suggested by other American firms, hiring the Harvard-trained principal, who is also armed with a knowledge of African regulations, will be equally beneficial in gaining approval from the House. However, chances of the local Speaker having the better relationship with the House cannot be ruled out. Yet, appointing this Harvard-trained principal would be beneficial for the internal management of the firm because this person can not only help in negotiation process but also in translating/transforming the main organizational policies to local setup upon successful negotiation. Moreover, chances of this Harvard-trained principal to be corrupt are lesser, unlike the local Speaker that might demand something from the parent company to bring fruitful outcome to the negotiation process. ...Download file to see next pagesRead More
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