1.

List all the different types of bribes, payments, or favors represented in this case under (a)

FCPA, (b) Criminal Law of PRC, and (c) Law against Unfair Competition of the PRC. Why is each

either legal or illegal?

Under FCPA, trips aboard, invitations aboard, appropriate compensations, sponsor overseas

education, purchase of inspection certificates on the black market. These are all illegal practices

because they are things that Multinationals Corporations, foreign trades are forced to do when they

are dealing in a corrupt country, they have to basically adapt to the countrys rules to maintain the

transaction of the business. In most of the cases, although foreign traders do not want to play the

game in that country if they want to accomplish their business they have to. Corruption in China is

part of their business culture which means that whoever enters the country to negotiate might have to

face this fact.

Criminal Law of PRC known as common bribery, this type of bribe is legal because is covered under

the new Communist Party of China (CPC) which says that anyone who demands or accepts money or

property in return for benefit is guilty of briber y and applies to bribery of state officials and employees

of state-owned enterprises.

Law Against Unfair Competition of the PRC known as commercial bribery, this type of bribe is also

legal because is covered under the new Communist Party of China which prohibits business from

giving money or property to customers to sell or purchase products.

2. For those practices that you listed as illegal, classify each as lubrication, extortion, or

subornation, and explain your reasoning?

Lubrication: it is a small payment, gift, or service given to a low-ranking official in a country where such

offerings are not prohibited by law. The law is confusing in that it says nothing about punishment for

gifts and benefits costing less than $600 or even whether these transactions can amount to bribes.

Subornation: Consist of giving large sums of money for official in order to get a process moving faster.

The bribers use money or other benefits to win over Chinese official to facilitate their business in
 China. If they can establish good relationships with those Chinese official, they will have more

opportunities to sell high-level products to get more profit or enlarge the market in China. Because the

suborned official will open a green channel to the bribers, such as reduce the approval process,

shorten the approval time, loose approval requirements and so on.

These are subornation. For example Trips aboard, invitations aboard, appropriate compensations,

sponsor overseas education, purchase of inspection certificates on the black market.

Extortion: It is payments are extracted under duress by someone in authority from a person seeking

only what he or she is lawfully entitled to foreign trips: Extortion for example in which the official

withheld a letter of credit.

3. Which of the payments, favours, or bribes are illegal under the Foreign Corrupt Practices Act

(FCPA)?

Under the Foreign Corrupt Practices Act (FCPA), it is illegal for any companies or individual, who may

wish to offer or pay directly or indirectly bribes to foreign government officials, lawmakers and political

leaders or parties to be financially benefitted from any services or functions in that country.

Classification of benefits that includes paid vacations to foreign travel (no connections to business),

cash payment, arrangement of jobs and gift vouchers for shopping or arrange overseas education for

family members falls under bribes, favours or bribes.

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 titled Ethical and
 Socially Responsible Decisions in Chapter 2 as a guide to assist you in your

decision?

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 titled Ethical and Socially

Responsible Decisions in Chapter 2 as a guide to assist you in your decision.

I will talk about ethics & public. According to Merriam-Webster (n.d), Ethics is an area of

study that deals with ideas about what is good and bad behavior and Public is relating to,

or affecting all or most of the people of a country, state, etc., I want to say about these

things; Ethics, public, and ethics in public service. Although we may not recognize them,

they are really close to our lives. This article talks about corruptions, and implies about

ethics in public service. Although almost all people pursue each others interest or profit,

they have to pursue their goal in the public good. If they are infringing a public good or

public ethics, it could be infringing your quality of life. Thus, we have to watch out for

corruption and remind ethics and public.

Also, those things are not other countries business. If your country that is where you

born hardly involved with corruptions, and bribes, you might be imagine your countrys future.

We already know where it is. Even though they are still getting a good economic growth, in

the near future, the corruption will disturb their task.

From above all paragraphs, we can distinguish what is ethical response or not; if

your behavior were infringing public good or violate ethics in public service, it means you

were infringing on it.

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?

Yes, I think bribery will become less prevalent in markets like China. Although the legislative purpose does

not exist, but in fact, FCPA has a role in promoting the construction of incorrupt government in the host

country. To be investigated and exposed cases because of bribery, and bribery will feed back to the

country which bribe are living in. As a result, the host country, not only improves the detection rate, but also

saving the cost of justice.

6. List alternatives to paying bribes in international market and discus the pluses and minuses of

each?

There are not many alternatives to paying bribes. In many developing countries corruption and bribery are

opposite side of the coin, which is the most trusted and reliable method of doing business at Government

level. Compromising on an agreement, lock into the binding and establishing good relationship with the

right people might be beneficial to both parties without the possibility of bribery of payment and gifts. To

success this method, the countries need to be focused or agreed for productive and ethical business

norms and must leave out the offering or demand of briberies.

On the other hand, most disadvantages is, business companies or host countries may not comply

universal law and they will do what is beneficial for their own interest. To protect national interest, culture

and save society, it is better to keep Foreign Corruption Act but it is rarely impossible to maintain in 3rd

world or developing countries due to some greedy politicians and officials.

Reference

http://www.merriam-webster.com/dictionary/ethic
http://www.merriam-webster.com/dictionary/public