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This post addresses competitive advantages & the FCPA.

If an American company is doing business in a country where bribes are commonplace or expected, and competing with a Swiss company which does not face similar restrictions, are the Americans operating at a competitive disadvantage? Should they be forced to face such restrictions on business?

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The Americans do operate at a disadvantage when they compete with foreign countries that do not have restrictions against bribes and other corruption-related practices. In many countries, bribes are considered commonplace and an actual way of getting things done from a business standpoint. This has become the norm in these countries. When companies operate in the same country that are not permitted to engage in practices that ...

Solution Summary

The solution provides a detailed discussion on the FCPA, and examines if companies allowed to practice corruption in other countries have a competitive advantage compared to companies bound by the FCPA. This solution is written based on 25+ years of professional experience in the business and accounting industry.