In Some Countries, Bribes Are Commonplace

question 15

True/False

In some countries, bribes are commonplace. If a 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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Definitions:

Pledging

The act of using an asset as collateral to secure a loan, without transferring ownership of the asset.

Administrative Reason

A justification based on policy, procedure, or bureaucracy within an organization.

Unexpected Opportunities

Situations or prospects that were not previously planned for or considered that could benefit the company or individual.

Secured Loan Agreement

A loan agreement in which the borrower pledges an asset as collateral for the loan, which the lender can seize if the loan is not repaid.