Causes And Consequences Of Bribery In International Business Essay

Causes And Consequences Of Bribery In International Business - Essay Example Earlier regulations against corruption focused on companies in China only. Foreign companies often had to pay for getting licenses, indulge in the black market, evade customs, pay for foreign trips of officials, payments of their kids’ foreign education, or form cartels to overcome the system. The loose implementation of FCPA made it easier for US companies to indulge in corruption practices.  The â€Å"Criminal Law of the PRC† covers acts of bribery of state officials and employees of state-owned enterprises. The â€Å"Law Against Unfair Competition of the PRC† stops companies from giving money or property to customers.  The presence of grey areas such as the issue of gifts below the monetary value of $600 makes it less effective. The laws are framed in such a way that any kinds of gifts to anybody can be interpreted by manipulation of the law.  To control corruption practices, the US Company while starting its business in China, should modify its policies and procedures to suit the culture of the country, along with continuous training and reminding of the rules.  The comments by the US Foreign Services Agent highlight the shortcomings in the existing law and the inclination of agents towards helping US companies in corruption matters to provide them a level playing ground field with other country's companies.  1. The different types of bribes, payments or favors are payments for licenses to import and export, payment for foreign trips of Chinese officials, payment for the foreign apartment, foreign education of kids, payments to sell or purchase goods, payments to state officials in return of some favors, payments to evade customs.  6. The comments by the former US Foreign Service Agent highlight the flaws in the legal system, and unethical behavior of the agents. It is unethical as well as illegal to assist business by providing them the best corruption practices.  

Financial Crisis about Fannie Mae Research Paper

Financial Crisis about Fannie Mae - Research Paper Example The Congress and President Roosevelt then passed a bill allowing for the establishment of Fannie Mae in order to freeze up capital by buying mortgages from lenders (Birger 38). The company was therefore chartered by the Federal Housing Act of 1934 to relieve the housing problem and increase homeownership among Americans. The primary purpose of Fannie Mae was to develop a secondary mortgage aimed at rejuvenating the financially strapped lenders such as loans and saving associations, mortgage banks, and commercial banks. Being a charted financial institution which is regulated by the Federal Housing Finance Agency (FHFA), Fannie Mae was not affected by the Gramm-Leach-Bliley Act of 1999 (Birger 44). Before the 2008 housing bubble burst, Fannie Mae was very successful. However, the fall in home prices and mortgage securitization changed the mortgage and housing sectors, which culminated in plummeting property values and foreclosures. The subprime events are partially blamed for unethical considerations by the lending institutions. However, the weight of the crisis can be explained by the global financial contagion, which was inevitable and hence characterized as bad luck. Following the global financial crisis, all the financial and credit institutions either were either culprits or victims. The financial hardship period was met by a higher degree of defaults in the loans and credits advanced to potential borrowers. On their part, Fannie Mae was blamed for their inability to regulate and control internal affairs which included poor accounting and credit policies (Birger 45). After the real estate cratered, it was criticized for being unable to safeguard their investment portfolio s. Having heavily invested in the subprime-backed securities, a higher rate of default in the mortgage industry adversely affected the company.