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International Expansion Decision

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You are faced with the need to expand, and you have found the perfect location in another country. It is easily accessible from both water and land and already has T3 communication lines installed. Locating to this site will save you millions of dollars. The only problem is that the president of the country wants a private donation of $1 million. As the leader of your company, what would you do? Explain in detail.

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Solution Summary

This solution discusses the scenario described. The ethics involved in the situation and the best possible steps to take are comprehensively discussed.

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Discussion for your question:

The main issue in this case is if the donation would be in violation of the Foreign Corrupt Practices Act (FCPA). All domestic companies are bound by the FCPA, which includes all multinational, international, and global business transactions. Under the FCPA, it is illegal for any agent, employee, manager, or associate of any U.S. based company to engage in any act of bribery or corruption. The FCPA does allow for grease payments. Basically, grease payments are fees paid in foreign ...

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