Question: 1 . Is what Frank did ethical? By whose ethics those of Latino or the United States? 2 . Are Frank s two different payments

1. Is what Frank did ethical? By whose ethicsthose of Latino
or the United States?
2. Are Franks two different payments legal under the Foreign
Corrupt Practices Act as amended by the Omnibus Trade
and Competitiveness Act of 1988?
3. Identify the types of payments made in the case; that is, are
they lubrication, extortion, or subornation?
4. Frank seemed to imply that there is a similarity between
what he was doing and what happens in the United States.
Is there any difference? Explain.
5. Are there any legal differences between the money paid to
the dockworkers and the money paid the jefe (government
official)? Any ethical differences?
6. Franks attitude seems to imply that a foreigner must com-
ply with all local customs, but some would say that one of
the contributions made by U.S. firms is to change local
ways of doing business. Who is right?
7. Should Franks behavior have been any different had this
not been a government contract?
8. If Frank shouldnt have paid the bribe, what should he have
done, and what might have been the consequences?
9. What are the company interests in this problem?
10. Explain how this may be a good example of the SRC (self-
reference criterion) at work.
11. Do you think Bill will make the grade in Latino? Why or
why not? What will it take?
12. How can an overseas manager be prepared to face this problem?

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