The Foreign Corrupt Practices Act of 1977 Makes It Illegal

question 67

Multiple Choice

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to

• A) attempt to make large payments or bribes to influence policy decisions of foreign governments.
• B) offer foreign businesses any type of incentive for purchasing their company's products and services.
• C) change their ethical standards when dealing with foreign firms.
• D) give even small tips or gifts in countries where such gifts are customary business practices.
• E) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.

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Definitions:

Industrialization

The transformation from agrarian-based economies to those dominated by industry and machine manufacturing, significantly altering societal structures and ways of life.

Economic system

The structured and organized way a society decides on the production, distribution, and consumption of goods and services.

Domesticating

The process of adapting wild plants or animals for human use, such as for food, work, companionship, or as pets.

Pastoralism

An economic system based on tending herds of large animals.