An American Company Has Been Working on a Business Deal

question 44

Multiple Choice

An American company has been working on a business deal in a developing nation.This deal will open an entirely new market to the American company,and will increase stability in the local economy and provide jobs to thousands of local workers.When the deal reaches the final phases,the local government asks for a sizable bribe from the American company to move forward with the proper permits to continue with the project.Which of the following is the proper analysis of the situation?

• A)The American company may not be able to give the bribe,even if they feel it is an acceptable cost of doing business,and the deal may fall through.
• B)The local government must get used to the American way of doing business if it wants to create a stable local economy.
• C)The Americans should give the bribe,because the ethics that apply to doing business in the US are suspended in foreign countries.
• D)The local government has every reason to expect foreign companies to conform to their way of doing business locally.
• E)The American company and the local government should turn to the International Uniform Code of Business to determine whether the bribe is acceptable in this situation.

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Definitions:

Future Generations

Refers to the members of society or communities that will live in the future, often considered in discussions of sustainability and inheritance.

Budget Deficit

Occurs when a government's expenditures exceed its revenues over a set fiscal period, leading to a shortfall that must be borrowed.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in successive quarters.

Deficit

A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets.