Describe the arrangements into which you would enter

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Problem

Your firm, Flyboy, Inc., is a successful U.S. manufacturer of aircraft. Flyboy would like to expand its market to Pamonia, a small, oil-rich kingdom that was once an Italian colony. The principal purchaser of aircraft in Pamonia is the government, although some private families have the resources to purchase the product. The same private families are, not coincidentally, also the nobility of the Pamonian kingdom. For a new entrant like Flyboy, breaking into the market without a local representative is not possible. You are also aware that local custom includes "grease payments" and lavish gifts to customers in Pamonia.

A. Prepare a five-page paper considering the pluses and minuses of entering the Pamonian market. Focus on the legal risks inherent in the proposed investment and how Flyboy might avoid them.

B. Describe the arrangements into which you would enter with your Pamonian agent.

C. Evaluate the possibility of using an Italian firm as your distributor in Pamonia. What would be the FCPA implications if Flyboy simply delivered the aircraft FOB Pamonia and had no involvement in marketing? What implications would this have for Flyboy's profit margin?

Reference no: EM133478167

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