-Please review the the following case and answer the three questions .

.....................Motorola has sent G.I. Quick from the United States to an economically developing nation called Developia, to develop the market for a promising Motorola product, the new X-4 Chip. There are two other multinational companies in direct competition with Motorola for the Developian domestic chip market, namely Red Hotand Blue Lightning.

Quick in not only a fine manager but also a brilliant technologist. He has spent the better part of a year in the new host country and has made considerable progress. He knows that Motorola has a much better product to offer, and has made this persuasively clear to prospective local buyers. He is working especially hard to ensure that the top officials of a large Developian company, namely Supremo, Inc., will give a large order for X-4s to Motorola, rather than buy from Red Hot or Blue Lightning.

The fact is, though, that at present Supremo buys some products of this type from Motorola, some from Red Hot and some from Blue Lightning. The Ostensible reason for this is that Supremo wants to spread its business among three suppliers as a hedge against possible failure of supply even though, according to rumor, it regards the X-4 as superior on all major counts. Still, G.I. persists in his dogged efforts to make Motorola Supremos sole supplier.

One day G.I is called in by Mal Diidh, Supremos vice president of purchasing. Mal tells G.I. that he is willing to cancel business with Red Hot and Blue Lightning, as he clearly sees that Motorola offers a better product. Then he adds a vague statement that G.I. has trouble interpreting, but which seems to mean that discreet, covert friendship gifts are a rather common business practice in Developia. Quick begins to suspect that Mal might have accepted under-the-table gifts from the two other companies. Slowly, subtly, Mal seems to indicate that if G.I. will provide a gift of about 8 percent of the sale price, Motorola will become his exclusive supplier. If Motorola refuses, however, he will keep the present Motorola contract at its existing level, but expand his business with Red Hot and Blue Lightning, who seem to understand our Developian culture quite well.

Please answer the following questions:

1. What is the issue?

2. What would you recommend that G.I. Quick do?

3. Are there any risks to Motorola and Quick if he agreed to provide the friendship gift?