Case
Hong Le
4/11/2013
MGMT 4670
Prof. Damkar
Written Response #1 1. What systems make up the political economy? What is the relationship of these systems?
Political economy is made up of political systems, economic systems and legal systems of a country. The political, economic, legal systems can have a profound impact on the level of the economic development in a country and hence the attractiveness of a country and its potential as a trading partner or host for a foreign direct investment. 2. There are two types of violation of property rights: public actions and private actions. Who commits private action violations and what do they involve? Who commits public action violations and what do they involve?
Private action violations include theft, piracy and blackmail by individuals or groups. These are usually committed by normal citizens. Public action violations include extortion of income or property and theses are committed by public officials in various forms of corruption. . 3. Under the most recent revisions of the Foreign Corrupt Practices Act provided for in the Omnibus Competitiveness Act of 1988, what type of payments to public officials are considered legal and what type of payments are considered illegal?
Omnibus Trade and Competitiveness Act of 1988 considers payments which expedite or secure government actions that is facilitating payments or speed money, to be legal and all except these are considered to be illegal that are can be punishable with heavy fines, imprisonment and ineligibility to do business in US. 4. Read the Country Focus: “40 years of corruption in Nigeria” on page 58 of the Textbook and Part 2 Case “Siemens Bribery Scandal” on page 166 of the textbook (9th edition). Applying the facts of these cases and your understanding of the issue of bribery, answer the following questions : 1. Describe the political, social, and economic conditions in Nigeria from the 1970’s to the year 1999.
The political
4/11/2013
MGMT 4670
Prof. Damkar
Written Response #1 1. What systems make up the political economy? What is the relationship of these systems?
Political economy is made up of political systems, economic systems and legal systems of a country. The political, economic, legal systems can have a profound impact on the level of the economic development in a country and hence the attractiveness of a country and its potential as a trading partner or host for a foreign direct investment. 2. There are two types of violation of property rights: public actions and private actions. Who commits private action violations and what do they involve? Who commits public action violations and what do they involve?
Private action violations include theft, piracy and blackmail by individuals or groups. These are usually committed by normal citizens. Public action violations include extortion of income or property and theses are committed by public officials in various forms of corruption. . 3. Under the most recent revisions of the Foreign Corrupt Practices Act provided for in the Omnibus Competitiveness Act of 1988, what type of payments to public officials are considered legal and what type of payments are considered illegal?
Omnibus Trade and Competitiveness Act of 1988 considers payments which expedite or secure government actions that is facilitating payments or speed money, to be legal and all except these are considered to be illegal that are can be punishable with heavy fines, imprisonment and ineligibility to do business in US. 4. Read the Country Focus: “40 years of corruption in Nigeria” on page 58 of the Textbook and Part 2 Case “Siemens Bribery Scandal” on page 166 of the textbook (9th edition). Applying the facts of these cases and your understanding of the issue of bribery, answer the following questions : 1. Describe the political, social, and economic conditions in Nigeria from the 1970’s to the year 1999.
The political