Oswaldo Enterprises Began to Do Business in a Small East

question 36

Essay

Oswaldo Enterprises began to do business in a small East African nation. The representatives of Oswaldo bid on government contracts. Although Oswaldo was by far the lowest bidder and offered a superior product, the company was not awarded a contract. Oswaldo officials learned after inquiring that the company would have to give substantial sums of money to high-level government officials in order to receive a contract. Oswaldo officials are considering this as a necessary cost of doing business, but they are concerned about violating U.S. law. Discuss the implications of this under the Foreign Corrupt Practices Act.

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, determined by a government.

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Concertgoer

An individual who attends a live performance, typically of music.