Question on laws vs $
Guys, I would need your help on this one
You are a business development manager at a mid sized automobile manufacturing company. Recently, you've been given a project to evaluate the possibility of manufacturing light duty trucks in a Southeastern Asian country. To develop a cost estimate, you visit the country with a team of experts to analyze local resources such as power, labor, and real estate. After the visit, you discuss the findings with an automobile manufacturing consultant. The consultant notes that the local laws and government bureaucracy typically means foreign investors spend more over a year obtaining all required permits. To avoid these delays, the consultant advises exchanging a small amount of company stock to the son of the country's president. In return for the stock, the president's son will personally handle and expedite the issuing of all permits required. What should you do?
A. Add the opportunity costs associated with the year delay in getting permitted without local assistance.
B.Notify your company a that a bribe is necessary to avoid lengthy delays in permitting.
C. Facilitate a meeting with the president's son and your managing director to finalize the details of the stock for services arrangement.
D. Determine the legality of the proposed exchange of stock for permitting assistance.


Shaan23
Tue, 12/23/2014 - 20:31
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A seems to be the correct
A seems to be the correct answer.
philzs
Tue, 12/23/2014 - 21:06
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The wording of A is not clear
The wording of A is not clear, and I tought it was A also.
The answer is
D. Determine the legality of the proposed exchange of stock for permitting assistance.
admin
Wed, 12/24/2014 - 03:32
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A does not seem practical.
A does not seem practical. First you can check if giving the stocks is within the legal framework of the country you are operating in. If its not considered as bribe over there, then you can add it to your project cost and get the approval done sooner.
D would be correct. , if you find its not legal then you can go for A.