This document discusses three main ethical issues that may arise for American businesses conducting international transactions: 1. Bribery is considered acceptable in some cultures but illegal according to the Foreign Corrupt Practices Act. This can put American managers in an uncomfortable position. 2. There is potential for misinterpretation between different negotiation styles and tactics across cultures, which some "corrupt countries" may take advantage of. 3. The giving and accepting of gifts needs to be handled carefully considering cultural norms around gift giving and whether gifts are personal or for the company. American businesspeople should research cultural customs surrounding gifts before engaging in international transactions.

1. 1
Business Ethics and Globalization
Wendy Lile
XMGT216
University of Phoenix
Due March 30, 2012
Allan Bardos

2. 2
Business Ethics and Globalization
One ethical issue is that, in other countries, bribes are an acceptable part of business
transactions. People in different cultures actually see taking money exchange for having
business done right as okay. In the American culture, of course, this is not okay. So it could be
very confusing and stressful for an American international business manager to have to do
business in these kinds of countries because to them bribery is wrong but if they want the job
done correctly and the transaction taken care of they must either do something wrong or stand by
their own culture, explain that in American culture that it is wrong and hope for the best. Thanks
to the Foreign Corrupt Practices Act though, this is not as much of a problem anymore because
Americans can cite the law if the issue of a bribe arises.
Misinterpretation could be another ethical issue that will most likely arise during a
business transaction. The text says that different “corrupt countries” can use misinterpretation to
play “dirty tricks” on an American business person with their “negotiation styles and tactics.”
Accepting gifts from customers by an employee is another situation that should be
handled very lightly. In the United States, it would not be right for an employee to accept a
personal present unless it is clearly stated in the job description that employees work for tips.
Most companies here will say that it is okay to accept a gift on behalf of the company, and then
display it in the lobby of the store or office to show the customer appreciation. But if an
American business person was to go to another country and was offered a gift for doing a job
well done, I would definitely have to check into that first with my superiors. Actually, before
going to another country this business person should have taken the time to learn as much as they
could about their culture first. Is gift giving a commonality in this country? Do they expect
anything in return? Or is it simply a token of appreciation? Are they going to get offended if the

3. 3
gift is rejected? It might also all depend on the situation, so they know they’re from another
country so they should not be offended. Anything too personal though should not be accepted in
any situation because they are representing a company and the gift could only be accepted on
behalf of the company.