Wikis International Business Assignment Example | Topics and Well Written Essays - 1500 words

Wikis International Business - Assignment Example However, the runaway corruption in these countries complicates the operation of the multinational companies. This situation gives rise to the problem of bribery that intertwines with corruption. It is almost impossible to mention bribery without thinking of corruption. The corruption that arises out of bribery erodes the economic and social lives of people and businesses. It is important to fight corruption because it discourages investor confidence that lowers the economic growth of a country. A weak economy puts a heavy burden on people by lowering their living standards. Corruption in these developing countries has adversely affected the ethics of international business. Bribery in international business usually takes place in big tendering processes and contracts. The Rolls-Royce case is an example of such a deal where a company pays significant amounts in bribery to secure a lucrative deal. Many companies have resorted to illegal means of obtaining contracts due to the stiff competition in the international market. Corruption has become a legitimate cost of doing business with countries that require infrastructure or are rich in natural resources. Countries such as Nigeria and Brazil have an abundance of natural resources yet at the same time still require infrastructural development. These companies’ primary goal is to make profits, and they are, therefore, willing to do anything to beat their competitors and stay in business. However, there are a few measures that the MNEs can implement to put a stop to the scourge of bribery. Multinational companies often pay hefty bribes to corrupt officials who are immune from judicial processes in these emerging markets. It, therefore, demands collective action on the part of these companies in order to change the dynamics of this corrupt game. They should further form a partnership with the civil society. Intermediaries are the ones that conduct most transactions for MNEs working abroad. The