Explain how the Foreign Corrupt Practices Act (FCPA) affects the functioning of businesses in foreign countries

What will be an ideal response?


There are special complications for managers when the law of the host country conflicts with the Foreign Corrupt Practices Act (FCPA) of 1977, as amended in 1988. Although the FCPA allows remuneration to lower-level foreign agents and officials to expedite the handling of goods that U.S. businesses are seeking to sell in another country, it strictly forbids payments to political officials beyond a certain level.
Companies can be held liable for both civil and criminal sanctions for violating the FCPA. Therefore, managers must keep a close watch over the actions of hired foreign agents, as well as over the actions of their own employees abroad.

Business

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