Q. Case 2-5 coping with corruption in trading with China

1. List all the different types of bribes, payments or favours represented in this case and say explain why each is either legal or illegal.

2. For those practices that you say are illegal, classify each as lubrication, extortion or subornation and tell explain why.

3. Which of the payments, favours or bribes are illegal under the Foreign Corrupt Practices Act (FCPA)?

4. Assuming that the FCPA did not exist, illustrate what is the ethical response to each of the payments, favours or bribes you have identified? Read the section entitled "Ethically and Socially Responsible Decisions" in a guide to assist you in your decision.

5. Now that the OECD has approved an FCPA-like treaty to ban commercial bribery by companies in member countries, do you think bribery will become less prevalent in markets like China?

6. List alternatives to paying bribes in international markets and discuss the pluses and minuses of each.