Coping with Corruption in Trading with China Essay examples

CASE 2-5 Coping with Corruption in Trading with China Corruption is on the rise in China, where the country’s press frequently has detailed cases of corruption and of campaigns to crack down on it. The articles primarily have focused on domestic economic crimes among Chinese citizens, and on local ofï ¬ cials who have been ï ¬ red or assessed other penalties. Indeed, China has been rated by Transparency International as number 59 of the 102 countries the German organization rates on its â€Å"Corruption Perception Index.†1 Finland is rated the least corrupt at number 1, the United States at 16, and Bangladesh the most corrupt at number 102. Corruption’s long arm now is reaching out to touch China’s foreign business community. Traders, trade†¦show more content†¦Refusing to make payments may not only hurt sales, it can also be terrifying. A U.S. ï ¬ rm was one of several bidders for a large sale; a Chinese ofï ¬ cial demanded the MNC pay a 3 percent kickback. When the company representative re fused, the ofï ¬ cial threatened: â€Å"You had better not say anything about this. You still have to do business in China, and stay in hotels here.† Not surprisingly, the U.S. company lost the deal. Traders of certain commodities may be tempted to purchase on the black market those import and export licenses that are difï ¬ cult to obtain legally. A fairly disorganized underground market, for instance, exists for licenses to export China-made garments to the United States. Some branches of the Commodity Inspection Bureau (CIB) also have posed problems for some traders. Abuses have emerged in the CIB since it started inspecting imports in 1987. A Japanese company, for instance, informed CIB ofï ¬ cials of its intention to bring heavy industrial items into China—items that had met Japanese and U.S. standards. The ofï ¬ cials responded that they planned to dismantle the products on arrival for inspection purposes. The problem was resolved only after the ï ¬ rm invited the ofï ¬ cials to visit Japan. Some traders get around such problems by purchasing inspection certiï ¬ cates on the black market. According to press accounts, these forms, completeShow MoreRelatedCorruption in China2317 Words   |  10 Pages200 11.08.200 Universidad Mayor Santiago de Chile Facultad Ciencias Econà ³micas y Empresariales International Marketing Manfred Brà ¤uchle Q. Case 2- 5 Coping with Corruption in Trading with China Rafael Fuentes Candia (Chile) Michael David Franz-Josef Kampmeyer (Germany) Johannes Knapp (Germany) Case 2 – 5 Coping with Corruption in Trading with Chin Tuesday, August 12, 2008 page 2 Rafael Fuentes Candia Michael Franz Josef Kampmeyer Johannes Knapp I. List all different types of bribesRead MoreCorruption in Vietnam1568 Words   |  7 PagesMatthew Barnett Corruption in Vietnam International Marketing December 31, 2015 1. 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