In: Accounting
You have been asked by a business director (BD) to attend a strategy meeting. The business wants to expand into India. The BD states that he’s heard of the law called the FCPA. He wants to know what it is and does it impact his efforts to develop business in India? Please respond in a memo to the BD
Memorandom
To :- Board of director
From :- ABC
Date ;- 1 August ,2018
Subject :- Introduction and impact of FCPA in business development in india .
We are writing to inform you about FPCA and its impact on business development in india - foreign corrupt practices Act is US federal law that address two main provisions
a. Accounting transparency requirement under securities exchange act 1934
b.bribery of foreign officials.
Impact on efforts to develop business in India described as follows :-
Under FCPA , several US Companies have been through enforcement action related to conduct in India . For example tyco international , Oracle corporations etc.
As we know corruption risk in india is generally higher due to its complex administration and various traits , hence it would be not easy to trade due to various risk exposure associated with . Few risk exposure are as follows :-
1.licence and permits that needs various regulatory process and registration fees .
2 Red flags through involvement of third parties like agents , brokers etc.