Reference no: EM132046955

Question: Post an approximately 300-word response to the week's reading assignment (Ch. 15) or the suggested discussion question. There are a number of ways to approach this assignment: consider the reading in relation to its historical or theoretical context; write about an aspect of the week's reading that you don't understand, or something that jars you; formulate an insightful question or two about the reading and then attempt to answer your own questions; or respond to another student's post, building upon it, disagreeing with it, or re-thinking it. In any case, strive for thoughtfulness and nuance.

Suggested Discussion Question: Lobbying and corruption have been the subject of much public interest and research. When faced with a regulatory constraint, firms can either comply, bribe the regulator to get around the rule, or lobby the government to relax it. Many firms choose to lobby or bribe, and it is generally believed that firms in developing countries are more likely to pay bribes to get around regulatory constraints, whereas firms in developed countries are more prone to lobby the government to change the rules. There is also evidence that the extent of lobbying increases with income and that lobbying and corruption are substitutes. Please comment on the variation in influence-seeking activities between operating in developed and developing countries and reflect on the potential consequences of engaging in such activities.