Bribes in International Business

Bribes in International Business

In 1977, the US passed the Foreign Corrupt Practices Act. I worked in Washington at the time representing foreign MNCs doing business in the US. My firm opposed the FCPA and I was surprised that the Act was passed. The law prohibits the payment of bribes to obtain or maintain a contract with a foreign country. The law allows small bribes to help carry out routine business activities.In many countries bribes are the norm. What is your opinion about the payment of bribes in international business? Have you ever had to pay money to facilitate a transaction? Multinational Corporations (MNCs) operate globally, create employment opportunities, and provide goods to consumers. MNCs are also criticized for extracting resources, abusing labor, and altering cultural norms. Are MNCs positive contributors or are they detrimental to societies?


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