Several International Sales Representatives in Your Organization Have Faced the Murky

question 71

Essay

Several international sales representatives in your organization have faced the murky question of paying foreign government officials under the table in order to do business in other countries. Describe three strategies that the organization should consider to resolve these and other ethical dilemmas for foreign salesrepresentatives.

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Definitions:

Nondiversifiable Risk

Risk that cannot be eliminated by investing in many projects or by holding the stocks of many companies.

Diversifiable Risk

Risk that can be eliminated either by investing in many projects or by holding the stocks of many companies.

Expected Return

Expected return is the anticipated profit or loss from an investment, factoring in all possible outcomes weighted by their probabilities.

Asset Beta

A constant that measures the sensitivity of an asset’s return to market movements and, therefore, the asset’s nondiversifiable risk.