Expanding Pharmaceutical Operations
large pharmaceutical firm that manufactures an anti-malarial drug. Your firm is
considering opening up a factory in a small Central American nation where
malaria is still extremely common. The operation will be a joint venture
between your firm and the local government.
The majority of the people in that country cannot afford the
medicine because of the high import tariffs. Yet if your plan goes through,
over 200 jobs will be created and the drug’s international price will drop by
over 50 percent.
In a final meeting with a senior government official, the
gentleman informs you that if you pay him $500,000 cash, the deal will go
through. What issues must you consider? What do you do?
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