Question

Which of the following are payments to ensure receiving the standard treatment that a business ought to receive from a foreign government, but might not due to the obstruction of a foreign official?A) Grease paymentsB) Social exchangesC) Opportunity costsD) ProvisionsE) Deferred payments

Answer 1

Answer:

Grease payments, Option A, are payments to ensure receiving the standard treatment that a business ought to receive from a foreign government, but might not due to the obstruction of a foreign official

Explanation:

Grease payment is like a bribe which is usually small in amount and is provided to a government official or to a businessman with the aim of expediting a business decision. It may also be used in case any shipment or any transaction needs to be expedited.  

Grease payments do not change the result of the foreign official's decision, under FCPA. If it changes the consequence, then it is considered a bribe. In that case, grease payments become illegal. It also depends on the amount given to the official and their frequency to decide if it is illegal.