Question

How does FCPA impacts US businesses operating globally.

Answer 1

As we know that FCPA is known as The Foreign Corrupt Practices Act. This act was introduced to prevent bribery scandal offered by U.S. firms, companies and individuals to the other countries officials, other countries government etc.

As we know that every type of preventive law have severe impact on the operations of the business.

So as per requirements of the question let’s see the impacts of FCPA on the US business operating globally;

1. It will brings more transperancy in the business environment of US.

2. It will prevent unethical & illegal business activities in the US and in the global market as well.

3. It will brings effectiveness in the global operations of US companies.

4. It will bring more competitiveness in the business environment of US. As we know when illegal & unethical bribery is prevented then there will be fair business practices inside and outside the country.

5. It will help in true compliances with the global legal rules & regulations.

6. All firms & companies of the US will get equal opportunities as FCPA act will help in stopping unfair means of business.

7. There will be good reputation and image of the US companies.

8. This act will minimize the true costs of the business operations hence companies of the US will deliver good qualitative products at reasonable price to the consumers. Hence it will help the companies of US to spread business globally.

9. Although it is true that FCPA act can have immediate negative impact on the companies of US because this act will prevent these companies from offering bribe to other nations.

10. This will also prevent outflow of money from US because due to FCPA unethical & illegal outflow of money will not be possible. Thus it will result into retaining more money inside the local market.