Discussion Thread: Political Impacts of Globalization
1. Key Term and Why You Are Interested in It
The political impacts of globalization grabbed my attention in the week’s assigned
reading. I have never considered how doing business with another country could affect politics.
Satterlee (2023) states, “Some nations find the use of bribes as a critical leveraging tool that
facilitates necessary compromise in business exchange” (p.19). This made me want to look
further into countries that consider bribery as a necessary compromise and can promote it in their
everyday practices. I would like to know more about what countries consider bribery a standard
business practice and how extensive the bribes are. Lastly, how do countries that classify bribery
as illegal or unethical deal with foreign companies or governments participating in bribes?
2. Explanation of the Key Term
The political impact of globalization refers to how doing business with another country
affects your own. When conducting business in another country, certain risks must be considered.
The country's political views must be examined, and whether their political views align with
your ethical standards must be determined. Doing business with a country that already partakes
in corrupt practices could significantly impact your country's politics and affect how current
allies view their business with you. Conversely, partnering with a country with the same political
values will help increase your global footprint and develop lasting trade relationships that benefit
both sides economically and politically.
3. Major Article Summary
In the article “Bribery in International Business Transactions,” Baughn et al. (2010)
discuss how bribery has existed for many years but has recently been exposed due to increased
international business transactions. It mentions that most corrupt practices occur in the defense
and construction sectors, where contracts are awarded to the bidder willing to fork over the most
cash. These types of transactions cause insufficient work due to underqualified contractors.
Additionally, the bribes cause government funding to be shifted towards construction and
removed from health and education programs. Baughn et al. (2010) also cover the economic and
political factors of bribes. Their research explains that developed countries are less likely to
experience corruption than underdeveloped ones. Also, corruption will stunt economic growth
and is caused by poorer countries that accept bribery as an everyday practice.
Baughn et al.'s (2010) conclusions show that a firm that practices bribery will continue to
do so when conducting business in a foreign country. Also, when the firm is from a more
developed country, it is more likely to take advantage of an underdeveloped country with bribes
to gain business. They found that even though a country may be considered developed, there is
still a chance that it will somehow participate in the corrupt practice of bribery.
4. Discussion
How Does it Relate?
After reading “Bribery in International Business Transactions,” I found that my
interpretation of how globalization affects politics is slightly off. The political impact of
globalization mainly concerns the country where corruption is occurring. Globalization puts
underdeveloped countries at a greater risk of experiencing corruption. The developed countries
take advantage of them with bribes to gain contracts. Inexperienced workers then complete these
contracts, leaving the countries paying for them disadvantaged. The money underdeveloped
countries could have spent on education or healthcare is redirected towards whatever sector is
sending them the most. The citizens of these underdeveloped countries are essentially helpless
and are at the mercy of their corrupt governments.
Additional Sources
My research found many articles related to the political impact of globalization and
bribery. Gutterman (2019) discusses the cost of foreign corruption and how it affects politics in
different countries. Shashkova (2018) covers how corrupt practices in government date back to
the Roman Empire. She concludes that globalization increases corruption. Lee et al. (2010) also
describe how bribes have existed for many years. They cover how the size of a bribe depends on
how much influence the government has on that firm and what they do. Lastly, Williams and
Beare (1999) go over the shift of corruption from a domestic issue for many countries to a global
problem. All of these additional sources describe how corruption in the government of
underdeveloped countries is highlighted by globalization.
References
Baughn,7C., Bodie,7N.7L., Buchanan,7M.7A., & Bixby,7M.7B. (2010). Bribery in international
business transactions: JBE.7Journal of Business Ethics,792(1), 15-
32.7https://doi.org/10.1007/s10551-009-0136-7
Gutterman,7E. (2019). Banning bribes abroad: US enforcement of the Foreign Corrupt Practices
Act and its impact on the global governance of corruption.7European Political Science:
EPS,718(2), 205-216.7https://doi.org/10.1057/s41304-018-0153-z
Lee,7S.7H., Oh,7K., & Eden,7L. (2010). Why do firms bribe? Insights from residual control
theory into firms’ exposure and vulnerability to corruption.7MIR: Management
International Review,750(6), 775-796.7http://www.jstor.org/stable/41426823
Satterlee,7B.7C. (2023).7International business with Biblical worldview7(2nd7ed.). McGraw-Hill
Education LLC.
Shashkova,7A.7V. (2018). Corruption is a problem of political theory and practice.7Montenegrin
Journal of Economics,714(3), 143-154.7https://doi.org/10.14254/1800-
5845/2018.14-3.10
Williams,7J.7W., & Beare,7M.7E. (1999). The business of bribery: Globalization, economic
liberalization, and the ''problem'' of corruption.7Crime, Law and Social Change,732(2),
115-146.7https://doi.org/10.1023/A:1008375930680
