What should a U.S. company do if competitors are willing to offer a bribe for business in a foreign country?
What will be an ideal response?
Managers have to realize the fact that bribery is a fact of life in world markets. It is not going to change overnight or based on how ethical the U.S. companies feel about their business. In fact, bribery payments are considered a deductible business expense in many European countries. Two alternative courses of action are possible. One is to ignore bribery and act as if it does not exist. This may be a very hard option. The other is to recognize the existence of bribery and evaluate its effect on the customer's purchase decision, in other words, treating it as just another element of the marketing mix. The overall value of a company's offer must be as good as, or better than, the competitor's overall offering, including bribe. If possible, a lower price, a better product, a better distribution system, or better advertisement/promotion can be undertaken to beat the competition. The best line of defense is to have a product or service that is superior to that of the competition, whether a bribe is included or not. Thus, a bribe should not be a factor that will sway the purchase decision.
You might also like to view...
Before preparing the balance sheet and income statement, an accountant would use what accounting record to first record the firm's transactions?
a. the trial balance b. the adjusting entry c. the general ledger d. the journal e. the subsidiary ledger
Swansong is a group of luxury hotels that uses ultra luxurious Rolls Royce cars for the
convenience of their guests. Which approach to differentiation is Swansong using? A) tangibles B) customer consulting C) reliability D) assurance
The following cost items relate to the Henning Company. Classify each cost as a variable cost or a fixed cost by placing an X in the appropriate column. Each cost should be evaluated by how it changes in total with changes in the volume of activity. Also indicate with an X for each item if it is a product cost or a period cost.?Variable or fixed cost?Product or period cost?Cost itemVariableFixedProductPeriodExecutive salary????Direct labor????Direct materials????Depreciation of factory equipment????Indirect labor????Delivery expense????Television advertising????Indirect materials????
What will be an ideal response?
IMXP Corp. enters into a 30-day forward exchange contract to buy 113,540,000 yen for $100,000
Which of the following statements is true concerning this transaction? A) IMXP will receive 113,540,000 yen today and pay $100,000 30 days from now. B) The spot exchange rate in 30 days will be 113.54 yen per dollar. C) IMXP will pay $100,000 today and receive 113,540,000 yen 30 days from now. D) IMXP will pay $100,000 and receive 113,540,000 yen 30 days from now.