The Red Machine Chapter Summary

In fact, bribery is a two-way act that intimately involves some, although not all the citizens. If people are willing to bribe officials in a setting in which there is fear of punishment on either sides officials are still likely to accept bribes. In China, however, the public blames on the corrupt officials who are the moral protectors and are considered to be above such

Scott Nette in his article "The Home Depot: Too Many Bribes for One Company" describes the case of four purchasing managers caught accepting bribes.

The FCPA explicitly state that it is illegal for foreign business entities and individuals to engage in unlawful practices that include, making payments to foreign officials in an effort to attaining or retaining business (DOJ.gov, 2016). This is the United States law and holds true for Chinese government healthcare officials who worked under the reformed Healthcare system.

thousand other downloaded documents and over $30,000 along with a one way ticket to China.

In 2013, GlaxoSmithKline was convicted by the Chinese government in 2013 and was fined $490 million in bribery to doctors and hospitals in order to boost its sales and raise product prices (GlaxoSmithKline Fined $490m by China for Bribery, 2014). GSK utilized travel agencies to create

Some would say that in order to accomplish global corporate success, and growth, one must “work” the system to their advantage. In the 1970’s there was an increased awareness of illicit payments used to bribe foreign governments. Several headlines had shaped the U.S. government’s concern; acting as a catalyst for the development and establishment of the Foreign Corrupt Practices Act. This Act, even to this day, is recognized for its purpose of prohibiting the practice of corrupt actions associated with the U.S. While widely recognized in the American business market, due to its impact nationally as well as internationally, its “real” significance in U.S. commerce has been criticized. As those

China as an economy has change rapidly over the past few decades. It has gone from a war struck country prior 1978, in which the economy was greatly effect, to one of the largest

A prime example of governmental corruption in Japan concerns an ex-government official who accepted a $54,000 bribe to use government connections to facilitate the granting of entertainment visas to 280 Filipina women. The visas were granted by officials in the Department of Justice and the Ministry of Foreign Affairs. The government has not investigated or prosecuted any individuals allegedly involved in this trafficking-related corruption case.

Xi Jinping is the top leader in the Communist Party of China and he’s the President of the People’s Republic of China. Additionally, according to (Timmons, n.d.), he worked up the ranks and touched all the right bases within the bureaucracy in order to become a major player in the Chinese Politburo. By 2013, Jinping was elected General Secretary of the Communist Party, Chair of the Military Commission and President of the People’s Republic of China. Moreover, according to (Economy, 2014, p. 80), Jinping articulated a simple but powerful vision for the country which was the rejuvenation of the Chinese nation. In fact, he rejected the communist tradition of collective leadership and instead established himself as the top leader within the tightly centralized political system. After just a few years in office, he has proven himself to be a transformative leader by

An investor informed his sons that Bernie planned to give out millions in bonuses earlier than scheduled, and the investors became curious and demanded to know where the money was coming from. Soon after Madoff was arrested and charged with securities fraud. Madoff admitted to investigators that within the Ponzi scheme he was running he lost over $50 Billion of investors’ money. He was ultimately charged with 11 felony counts: securities fraud, investment adviser fraud, and mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the United States Securities and Exchange Commission (SEC) and theft from an employee benefit plan. The prosecutors investigating him estimates that over $170 billion moved through the scheme and Bernie Madoff was sentenced to 150 years in

Deng Xiaoping has been the individual with the most impact on China since the 1970’s. Along with Mao Zedong and Zhou Enlai, he is looked at as one of the key figures in evolution of communism in China . Deng Xiaoping will be remembered as a national hero, but this was not always the case. The real story of Deng includes the fact that, on more than one occasion, his peers ostracized him. During his lifetime he has been a part of the many changes in China throughout the twentieth century. He was by Mao Zedong’s side through all of the struggles of the Chinese Communist Party; battling with Chiang Kai-shek and the Guomindang over

In contrast, the PRC, operating under a single party does not have the same incentives to bow to popular political pressures. However, it was displayed clearly during the Global Financial Crisis (GFC) and noted by (Curran and Von Acker 2010, 185) that in times of crisis the PRC will tend to “retreat from the privatisation of the economy for a significantly increased state intervention”, including such measures as ordering the mainly state owned banks to cut the size of loans granted to private enterprises (Wang and Iftikhar 2010). This kind of government control can have negative impacts on business but are sometimes considered as an acceptable trade-off, as in the case of the compulsory minimum wages set and tightly controlled in the United states by the federal government and set in the PRC by autonomous provinces and municipalities, which allows for corruption and abuse by domestic and international business. While the Chinese market promises cheap land and labour, it must be understood that recklessly abusing such activities will tarnish that rare commodity that is brand image. For some, such as Hitachi the offer is simply too tempting to refuse and they take advantage of what Barboza (2006) describes as the “cheap land and labour” and the “factory system where young workers essentially march to their jobs every 8 hours, often from company owned dormitories nearby”.

The government of china is very keen to encourage foreign investors, because foreign companies are regarded as relatively good corporate

In 1989, Xiaoping opened the Shanghai Stock Exchange again 40 years after Mao´s shut down. After 1992, the privatization of the state owned industries took a faster pace and the private sector surpassed the public one in terms of GPD. The private sector which was considered as a “complement” is now considered as an “important component” of the Socialist Market Economy. The country is liberalized with important decrease of protectionist policies, regulations and the lifting of price controls. State owned monopolies in sectors such as banking and petroleum remained.

There is no shortage of bad news when it comes to land confiscations, corruption and pesky deals with foreign investors, which often end up being connected with personalities at the top of the government. One can recall, for example, that a major player in sand-mining operations in Koh Kong province, where dredging has bankrupted thousands of fishermen, is LYP Group, headed by Ly Yong Pat, a CPP mandarin nicknamed the 'King of Koh Kong' for his extensive investments in casinos and other businesses. In a separate instance, 20,000 people were evicted from the shores of Boeung Kak lake in Phnom Penh to make way for an ambitious real estate project managed by Shukaku Inc, a company linked to CPP senator Lao Meng