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Case 2-5 coping with corruption in trading with China
1. List all the different types of bribes, payments or favors represented in this case and say why each is either legal or illegal.
2. For those practices that you say are illegal, classify each as lubrication, extortion, or subornation and tell why.
3. Which of the payments, favors, or bribes are illegal under the Foreign Corrupt Practices Act (FCPA)?
4. Assuming that the FCPA did not exist, what is the ethical response to each of the payments, favors, or bribes you have identified? Read the section entitled "Ethically and Socially Responsible Decisions" in Chapter 5 as a guide to assist you in your decision.
5. Now that the OECD has approved an FCPA-like treaty to ban commercial bribery by firms in member countries, do you think bribery will become less prevalent in markets like China?
6. List alternatives to paying bribes in international markets and discuss the pluses and minuses of each.