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Corruption: Impact on Foreign Investment and Capitalism

Write a research paper on the following: What are the effects of corruption on capitalism and foreign investment?
Include what the types of corruption are, the effects of corruption on MNCs, and MNCs can deal effectively with these problems. Refer to the following attachments for research purposes and include the different points of view into the paper.


Shore, C. (2004). Corruption Scandals in America and Europe. Corporate Scandal: Global Corporatism Against Society, 3, 29.

Tesař, F. (2005). Money Down the Drain. The New Presence, (3-Autumn), 38-39.

Skąpska, G. (2009). The rule of law, economic transformation and corruption after the fall of the Berlin wall. Hague Journal on the Rule of Law, 1(2), 284-306.

Chen, X. Y. (2007). Defensive medicine or economically motivated corruption? A Confucian reflection on physician care in China today. Journal of Medicine and Philosophy, 32(6), 635-648.

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In accordance with Brainmass standards this is not a hand in ready paper but only background help.

There are different types of corruption. From one perspective, there is a higher level corruption where presidents, ministers, and members of the congress/senate, and other high-level officials are involved. The other type of corruption involves lower-level civil servants, officers, and clerks. One type of corruption takes place during the policy making stage and the other type of corruption takes place at the implementation of policy stage. Each type of corruption adversely affects capitalism and foreign investment. When the Berlin wall was brought down, one expected capitalism. Instead, there was corruption, nepotism, and clientelism in law making (c). One type of corruption is called large corruption or involving large sums of money. These are paid once at a time. On the other hand there is small corruption where small sums of money are routinely paid. Usually, large corruption takes place with high level government officials. From a different standpoint types of corruption means the type of influence that is required. For example, one type of corruption is called bribes and extortion money. Corruption involves influence. This may be availed of through paying money, gifts, sexual favours, entertainment, political benefits, company shares, and employment. Different type of personal gains is provided during corruption. When there is ...

Solution Summary

This solution explains the impact of corruption on foreign investment, and capitalism. The sources used are also included in the solution.