You are a project manager for a company making a major proposal to a Middle Eastern country. Your major competition is from Japan.

a. Your local agent, who is closely tied to a very influential sheikh, would receive a 5 percent commission if the proposal were accepted. Near the date for the decision, the agent asks you for $150,000 to “grease the skids” so that your proposal is accepted. What do you do?

b. What do you do if, after you say no, the agent goes to your vice president, who provides the money?

c. Your overseas operation learns that most other foreign companies in this Middle Eastern location bolster their business by exchanging currency on the gray market. You discover that your division is twice as profitable as budgeted due to the amount of domestic currency you have received on the gray market. What do you do?