International MKT 3710
Case 2-5 Coping with Corruption
In Trading with China
Under the FCPA, there are two major types of bribes involved which are extortion and regular bribery. These two types of bribes are somewhat similar but are not the same depending on how they are being demanded for. In the sense that bribery is totally illegal anywhere in the world while extortion is not considered illegal in some counties but it is illegal in the United State.
The two laws being addressed under the Criminal Law of PRC are bribery known as common bribery, which involves the bribery of state officials and employees of state-owned enterprises, which are most of China’s large companies. This law also states that anyone who demands or accepts money or property in return for benefit is guilty of bribery.
And the second law addressed is the law against unfair competition which is also called commercial bribery which prohibits business within the country to give money or property to customers to sell or purchase products. All these types of bribes are considered illegal except for extortion that is only considered illegal in the United State. Meanwhile, the fact behind these laws of bribery is somehow complicated and also depends on how the gifts are being presented or how it’s being demanded for.
Bribery such as making payment or giving gift to facilitate something else or a certain business deal or making payment to make a process go faster is classified under subornation. An example of this is stated in the case where foreign traders make several types of payments to facilitate sales in China which the most common method is a trip abroad. The criminal law of PRC under common bribery can also be classified under subornation when the payment by the foreign traders to the Chinese officials in return of benefit, both the foreign traders and the Chinese official violates the law.
Like I stated in question #1, Extortion is an illegal activity in the United...
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