Riordan Manufacturing Company: Review and Analysis

Topics: Investment, Foreign Corrupt Practices Act, Bribery Pages: 6 (1952 words) Published: May 4, 2010
Riordan Manufacturing Company: Review and Analysis
Jennah Es-Sudan, Monica Malcom,
Annie Willis and Yeong Yoo
University Of Phoenix
December 1, 2009

Riordan Manufacturing Company Review and Analysis
The focus of this paper is to analysis the regulatory measures of Riordan Manufacturing. Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. With state-of-the art design capabilities, creating innovative plastic designs that have earned international acclaim. Attention to detail, extreme precision and enthusiastic quality control are the hallmarks of Riordan Manufacturing. With facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China, Riordan has the capacity to fulfill unique needs. Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise. The company decided to closed their plant in Michigan and open it in China. Opening this business in another country has advantages. Our team will also discuss unfair import laws, Foreign Corrupt Practices Act of 1977, Patents, trademarks, and intellectual property, and environmental regulation and how they relate to doing business in China. Unfair Import Laws

The government has assertively imposed our anti-dumping laws to fight unfair Chinese trade." alleged Commerce Secretary Carlos M. Gutierrez. "China’s economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago. Just as China has evolved, so has the range of our tools to make sure Americans are treated fairly. By acting on the petition filed last October, the United States today is signifying its continued pledge to leveling the playing field for American manufacturers, workers and farmers." Foreign Corrupt Practice Act (FCPA of 1977)

Congress enacted the Foreign Corrupt Practices Act ("FCPA" or "the Act") in 1977 in reaction to the Watergate scandal. Widespread media coverage of unreported crusade assistance and potentially unlawful payments to strange officials encouraged the Securities and Exchange Commission ("SEC") to begin an investigation. The SEC's investigation eventually exposed that more than 400 U.S. companies had paid bribes to foreign governments and politicians, totaling more than $300 million. An FCPA violation requires that action be taken with a corrupt intent. Corrupt means an evil motive of purpose, and intent to wrongfully influence the recipient of the payment or offer to misuse his official position or to influence someone else to do so. The act does not require the corrupt act to be a success; it just means that an attempt was made to influence an alien bureaucrat. China has made great efforts to combat essentials of bribery—through endorsement and enforcement of strict anti-bribery laws and penalties—it still remains a cause of concern in the China business market. For example, in 2005, 11,071 members of the Communist Party of China ("CPC") were disqualified from the party as reprimanded for dishonesty. In addition, Chinese magistrates dealt with 120,000 cases of misappropriation, corruption, and negligence of duty over the past five years. Given the size and magnitude of China's market, these issues also cause alarm for U.S. companies doing business in China. Chinese and other overseas companies may make unlawful expenses in China with restricted risks, U.S. companies doing business in China may feel marketable stress to disobey the Act to avoid finding themselves at a aggressive difficulty to companies that are not subject to the same laws or similar enforcement. For this reason, U.S. companies operating in China need a solid FCPA compliance program to avoid action for FCPA violations and to avoid becoming knotted in China's domestic corruption and bribery laws. Patents, Trademarks, and Intellectual Property

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References: Schaffer, R., Agusti, F.,& Earle, B. (2009, 2005). International Business Law and Its Environment (7th Ed.). Mason, Ohio: South-Western, Cengage Learning.
World Wide- Tax& Finance (2009).China Foreign Investment Incentives. Retrieved December 1, 2009, from
United States Patent and Trademark Office 2009. Definitions. Retrieved on November 30, 2009 from
EPA- China Environment Law Initiative November 2009. Retrieved on November 30, 2009 from
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