WalMart
has been accused of paying as much as a4 million to Mexican officials in exchange for preferential treatment.
Discuss these allegations. What might have prompted company executives to act in this manner?
What is the Foreign Corrupt Practices Act? What does it mean for companies? In your opinion, does the Act put U.S.
companies at a disadvantage in foreign markets? Do you think that WalMart
executives knowingly violated the Act?
Consider the impact of foreign investment on the host country. If the allegations against WalMart
prove to be true, discuss
the consequences of the companyâs actions in Mexico. What are the potential implications of this type of behavior for the
host country? What does it mean for local companies?
Reflect on the organizational culture at WalMart.
In your opinion, did the companyâs goals of quickly gaining a dominant
position in Mexico contribute to unethical and possibly illegal behavior by executives in charge of the companyâs foreign
expansion? Do you think that a lack of knowledge about the local culture contributed to poor decision making by WalMart
executives?
