Global Business

Free Trade

Tariffs between member countries are significantly reduced, aimed at promoting economic efficiency.

Custom Union

Sets common external tariffs among member countries for a level competitive playing field.

Common Market

Services and capital can move freely within member countries, but national regulations apply.

Economic Union (Single Market)

Removes all tariffs for trade between member countries, enabling free movement of labor and harmonizing policies.

Political Union

Represents advanced integration with a common government and reduced sovereignty for member countries.

Reasoning

The process of forming conclusions, judgments, or inferences from facts or premises.

Effect

A result or consequence.

Control

To exercise restraint or direction over; dominate; command.

Regulation

A law, rule, or order prescribed by authority to regulate conduct.

Business Behavior

The manner of acting as a person or entity engaged in commerce.

Analyze

To examine carefully and in detail to identify causes, key factors, and possible results.

Foreign Corrupt Practices Act

Legislation that prohibits US firms from bribery in foreign countries, enforced by the US Department of Justice.

International Law

Legal rules governing interactions between sovereign states and the rights of citizens towards one another.

Conduct

Personal behavior; way of acting.

FCPA - Anti-bribery Provisions

Prohibits payments to foreign government officials to assist in obtaining or retaining business.

FCPA Requirements

Payment must intend to induce the recipient to misuse their official position.

What Constitutes a Payment

Any individual, firm, officer, director, employee, or agent acting on behalf of a firm.

What is a Foreign Official?

Any officer or employee of a foreign government or public international organization.

Payment Exceptions

Includes services like issuing permits, police protection, and cargo handling.

Defenses

Payments must be lawful under foreign laws and reasonable expenses.