Corruption In China

Universidad Mayor Santiago de Chile
Facultad Ciencias Económicas y Empresariales
International Marketing
Manfred Bräuchle Q.
Case 2- 5 Coping with Corruption in Trading with China
Rafael Fuentes Candia (Chile)
Michael David Franz-Josef Kampmeyer (Germany)
Johannes Knapp (Germany)
Case 2 – 5 Coping with Corruption in Trading with Chin
Tuesday, August 12, 2008
page 2
Rafael Fuentes Candia
Michael Franz Josef Kampmeyer
Johannes Knapp
I. List all different types of bribes, payments, or favors represented in
this case and say why each is either legal or illegal
Payments are made and favors are given to establish goodwill or guanxi. Guanxi is
an important part of the Chinese culture. In the present case “Coping with Corruption
in Trading with China”, we identified a great variety of legal and illegal types of
· Business trips. Generally there exist two different types of business trips. In
the first case, the foreign company invites an official to get to know the
company better and visit a factory in the home country of the company.
(Legal) Often the costs of the trip are added to the overall costs of the
contract. In the second case, an official is simply offered a junket. No
inspection of the company is taking place.(Illegal)
· Outright payments to improve business are illegal. However these payments
are frequently being made to speedup the process of setting up a shop or
expanding into their country. These payments, or bribes, from the international
companies are to ensure that they are easily welcomed into the country and
are afforded protection from competition.
· The engage in black-markets trade of import an export licenses (Ille ...
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