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A Western firm is trying to get a license from the government of a developing nation to set up a factory in that country. The firm knows that the factory will bring many benefits to the country. It will provide jobs in an area where unemployment is high, and it will produce exports for the country, allowing that nation to earn valuable foreign exchange. So far, the government official with whom the firm is negotiating has been noncommittal, neither rejecting nor approving the request, but simply asking for more and more information. The firm has been told that relationships are important in this country, and that if it hired the daughter of the government official as a consultant, she could use her influence to get the license application approved, to everyone’s betterment. What should the firm do?

Operation Management, Management Studies

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