Business Abroad Case Study

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Recommended: Relevance of ethics in international business

Challenges of doing Business Abroad

As an owner of a business your main goal is to expand your business, nationally and internationally. Expanding your business internationally opens many doors to have a successful business. There are vast numbers of companies in the United States who manage business with companies all over the world. Nevertheless, companies from foreign countries may not always have the same ethics as businesses from the United States, which can be an immense deal, for example “An executive of a company offers a government official payment in exchange for the official incorrectly classifying imported goods so the shipment will be taxed at a lower rate than the correct classification would require” (Cateora, Gilly and Graham, International Marketing)
The Foreign Corrupt Practices Act (FCPA) amended in 1988 and in 1998, makes it illegal for companies to pay bribes to foreign officials. The FCPA is composed of two provisions which consists of, (1), the anti- bribery provision that forbids corrupt …show more content…

Corruption is a severe problem that the world is facing at the moment and has been going on for quite a while now. “ The problem of business ethics is infinitely more complex in the international marketplace because value judgments differ widely among culturally diverse groups” (Cateora, Gilly and Graham, International Marketing). What American managers opinion as fundamental, others interpret as a sign of misuse. Performing in an ethically and socially accountable way should be the stamp of every business performance, international or domestic. There are many economic effect of corruption such as weakening the economic expansion, falsifying the competitive playing field and diminishing the excellence of government services and organization. As a business manager or employee if you knowingly know about a bribe it is best to report a

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