. Discuss why or why not the Foreign Corrupt Practice Act is sensible to you. is
ID: 1164524 • Letter: #
Question
. Discuss why or why not the Foreign Corrupt Practice Act is sensible to you. is flighting comuption the right thing to do, or does the statue place American companies at an unacceptable competitive disadvantage? . Generally speaking, should the United States pass laws that seek to control behavior outside the country? . Or, when in Rome, should our companies and subsidiaries be allowed to do as the Romans do? . Do you favor free trade agreements like NAFTA? Do you believe that free trade benefits everyone in the long run, or are you more concemed that American jobs may be lost?Explanation / Answer
Foreign corrupt practice act of 1977 prohibits payments, gifts or anything of value as a bribe to foreign officials to assist in obtaining or retaining business. It was passed in response to federal investigations of American companies that were paying large amounts in bribes to different foreign government officials. It also aims to increase the responsibilities of corporate officers, directors, and managers to prevent any wrongdoing while dealing in foreign markets.
Though it is true that there are countries which expose US companies to very high risk of corruption and because of FCPA regulations companies can find it difficult to do business in these countries. At the same time in today’s market if a business wants to survive, it should assure its customers, investors, vendors and shareholders that they are operating in a socially responsible manner with integrity. By following FCPA regulations businesses can bring in the transparency and confidently assure it. In my opinion fighting corruption is the right thing to do as there is a strong link between corruption, slavery and human rights abuses. FCPA provides US companies an invaluable tool to fight corruption abroad.
Yes, US should pass the laws which seek to control behavior outside the country. There are many reasons to support this. First In a business environment where corruption is rampant firms cannot distinguish themselves based on superiority of the products, efficiency or business model etc. They loss competitive advantage where as in an environment where corruption is least they seek to distinguish themselves based on competitive advantage. It also supports the US policy for free markets.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.