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PAYING FOR SPECIAL FAVORS Aggressive companies in some regions of the world commonly use payoffs to gain access to new markets. Some countries consider bribes to be tax-deductible business expenses. However, U.S. companies can face hefty fines and prison sentences when U.S. laws are violated. The Foreign Corrupt Practices Act (FCPA) prohibits bribery of foreign government officials by U.S. businesspeople. FCPA is designed to prevent obtaining favorable business decisions using methods that would be illegal in the United States. Companies may be fined up to $2 million for violations. In recent years, the United Nations has adopted similar anti-bribery rules. Sometimes companies cave in to local customs. A U.S. computer company offered Chinese journalists the equivalent of $12 to attend its news conferences. The company said the money was for taxi fares; however, the amount was equal to a week’s pay for some journalists. Think Critically According to the guidelines for ethical analysis, are the payments to Chinese journalists ethical?
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