When Ikea Was Poised to Open a Flagship Store Outside

question 38

Multiple Choice

When Ikea was poised to open a flagship store outside Moscow in 2001, its executives were approached by employees of the public local utility. If Ikea wanted electricity for its planned grand opening, the public utility officials needed individual cash payments.

• A) Ikea could pay the money as a facilitation payment and not violate any anti-bribery laws .
• B) Ikea and other companies from Sweden do not follow the OECD requirements on bribery so Ikea could pay the officials and not violate any laws .
• C) The payment to the public officials would be a bribe and would violate Swedish law .
• D) The anti-bribery provisions apply only when a company offers to pay them, not when public officials request payments .

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to gauge inflation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic output over time by valuing goods and services at constant prices.

Money Supply

The complete inventory of monetary assets within an economy at a defined moment.

Money Supply Increases

A situation where the total amount of money in circulation within an economy is expanded.