These are difficult issues for managers to resolve.
Companies that don't oil the wheels of contract negotiations in foreign countries can put themselves at a competitive disadvantage, yet managers walk a fine line when doing deals overseas. Although U.S. laws allow certain types of payments, tough federal antibribery laws are also in place. Many companies,including Monsanto, ScheringPlough, and IBM,have gotten into trouble with the U.S. Securities and Exchange Commission for uaing incentives to facilitate foreign deals.