Marketing Mattew Case Study

Case Study Assignment

Case Study assignment

1. The agency and the advisor are taking to consideration as a regular case. It is important to pay fee for the Middle East advisor. Matthew was given example by advisor about the Italian and German who paid their commission always. Advisor did not take into consideration the laws by government as it seems that he is attracted to charge. The commission for advisor was mandatory and the price of contract is $75000. Matthew will not get the deal if he will not pay commission because the advisor will deal with companies who pay charge. The vice president and sales manager will appreciate Matthew if the transaction is complete, this happens only if he pays fee. The vice president uses words like “do whatever it takes” and he also knows how Matthew is going through all this. Matthew will lose first attempt deal he do not pay commission and it will decrease his confidence levels and creates a bad impression with vice president and his colleagues, but if commission is paid then it communicates increased profits of success which enters the market. On the other hand, the competitors will be attracted to invest in Middle East market and will pay the fee, if commission is not paid.
2. To escape the risks of being charged the fee can be paid on legal terms. By legal agency fee commissions can be paid. To avoid compliance violation it is essential to follow Foreign Corrupt Practices Act Program. Due to political pressurization there is a failure in the protection of foreign legal systems mainly when solving business clashes. In the mentioned case, Matthew could have won the deal if he would have consulted lawyer for counselling regarding honesty of the system of court in Middle East.
3. Specifically in the international trade OECD is eliminating bribery and corruption. OECD key emphasis is to enhance development, increase confidence in the market and eliminate poverty.  The foreign bribery needed to be considered the liability of legal persons by member nations. This law should be exposed to legal obligations and should be set to legal rights. The anti- bribery is focused on applying penalties for bribery to legal entities. This clearly tells that firms are responsible for corruption and bribery. There was implementation of corruption of foreign public official’s act of 1998 ever since Canada approved OECD agreement. There were twenty investigations which are ongoing under law. Lack of enforcement proves that there is only one opinion.  There will be peer pressure while attracting foreign business in competition to international businesses.  In Canada there is a need to eliminate jurisdiction and federalism and there should be involvement in foreign corruption investigation.

References:

OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. (n.d.). Retrieved from OECD: http://www.oecd.org/corruption/oecdantibriberyconvention.htm