Suzanne Searles, TransPort's Manager of Marketing, Is Traveling on Business

question 29

Multiple Choice

Suzanne Searles, TransPort's manager of marketing, is traveling on business in a foreign country. She is negotiating a large contract with the ministry of agriculture, and the minister's deputy is asking for a "facilitation fee" of $250 USD to relax certain contractual requirements. At this point, Suzanne should

• A) pay the deputy because the value of the contract is significant.
• B) accuse the deputy of unethical behavior and immediately return home.
• C) counter with a smaller amount, for example, $225 USD.
• D) comply with TransPort's ethics program, telephoning her firm's ethics officer or legal counsel as needed.
• E) contact law enforcement authorities in the foreign country.

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Definitions:

Closing Rate

Closing Rate refers to the exchange rate between two currencies at the end of a trading period, used in accounting to convert the financial statements of foreign subsidiaries.

Spot Rate

The current market price at which a particular currency can be bought or sold for immediate delivery.

Forward Rate

The agreed-upon exchange rate for a currency transaction that will occur at a future date, used as a hedging instrument against currency fluctuations.

Average Rate

An indicative value representing the mean of several different rates or prices, commonly used in finance.