MKTG 732- Section 102

Individual Assignment # 2

Prepared for Professor Tulsi Dharel

Prepared by Kavita Rawat Student # 300726883

School Of Business Centennial College October 29, 2013

Answer: 1 After reading and analyzing the case, keeping my foot in Mathews shoes I think he should pay the commission though his firm has a policy of refusing such kind of deal but still its common in terms of making a successful deal and is used by many firms too, also in an international business you just cannot implement and follow your own norms to get any deal you should consider the culture and norms of the other country. Moreover the deal was worth $2.7 million and sales manager and the CEO were rely on Mathew as this deal was very important for Certec in terms of money, global relation and business. Just for the commission of $12,000 he cannot miss such a beneficial deal which can adversely affect both the firm and his carrier. As far as payment of commission is concerned he should pay this commission in form of a legal fee to be safe from future quarries and inspection by Canadian government regarding the bribery and corruption, moreover he should inform and convince his sales manager and the CEO regarding the policy of getting a deal in Middle East which is the only way to get a deal and if we wont accept the fact we might can lose the deal and the chance to do business in Middle east. Further he can also put forward the advantage of this deal such as economic and infrastructure growth, employment generation and further fruitful relation in terms of trade and peace. Answer 2: Every state has its own culture and norms; it might be possible that the norms or rule you follow may be different than the values and beliefs of other state, which are due to difference in culture, values, belief, way of negotiation and communication. If in Middle East giving and taking commission is acceptable and other firms do follow the similar policies one cannot change it but its your decision to refuse the deal but this will cost you in losing the deal and might can close

your further chance of doing business in those country. However to avoid giving commission directly he can hire and contact a local legal firm or an agent to carry the deal on behalf of him as they better possess the knowledge and understands the rules and trends followed in the country, and can safeguard himself by not being a part of this illegal practice. Answer 3: With the competitive challenges and globalization the OECD Anti-Bribery convention has imposed new rules and regulations for the fair international business transaction to promote integrity and for better and improved trade and investment. This organization is a group of 30 countries to promote property and economic growth through cooperation between members and to remove the supply of bribe to foreign public officials by their nations and to reduce unfair and unethical competition in global business and to support development. The implications for the Canadian business people in terms of selling to foreign government are: (OCED, 2013)

1) They have to follow a set of accounting and auditing standards to avoid the unfair use of accounting document for bribery. 2) Banning of political and economic consideration in investing the offence. 3) The business people should not be indulging in any king of unfair mean of business transaction such as bribery to officials else will be penalized. 4) Business people must ensure the regular and reliable and timely information disclosure regarding their companys objective, governance policies and structure, financial activities, performance and situations, ownership rights and shares, issues regarding relationship between stakeholders and employees.

5) They must disclose the statement of information regarding ethical, social, environmental policies and CSR activities.

Works Cited
OCED. (2013, 11 22). Retrieved from http://www.oecd.org/corruption/