Foreign Market Extortion and Regulations Considered – It’s a Part of Doing Business
If you do international business for any length of time eventually you get into a pickle with bribes, kick-back requests, extortion, or regulatory fines all based on and originating due to domestic competition and crony capitalism. Yes, I know it’s amazing the shenanigans that go on in the US sometimes, and if you are na?ve and think it doesn’t happen here too with our own government regulators, lobbyists, politicians, and cut-throat competition, then I bet I can tell you who you voted for in the last presidential election, and whose bumper sticker you’ll be toting around this time again. Okay so, let’s talk shall we?
Even with all that goes on in the US
it’s a far better cry than doing business as an American company in a foreign nation. But, rather than me just complain about the issue, let’s turn this into a class show-and-tell case study for you, as I don’t want anyone emailing me and telling me I don’t know what I’m talking about here today.
Okay so, on June 15, 2012 their time
China Economic Review had a rather interesting article pretty much admitting the reality of the challenges that US firms have doing business in the country. The Economic Review of China indicated that the government regulators have slapped a large US retailer with another fine of over a half a million dollars and made an example of them in their media. Claiming that;
“Government agencies say the retailer sells sesame oil containing benzopyrene and illegal high-level squid with dangerous cadmium levels. The chemical is a carcinogen and is considered dangerous to human health. The accusation came as part of China’s annual food security week, when the government usually accuses foreign companies of violating regulations. “
Last year
the same US company was hit by …
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