Assume that an executive at Telefonica arranges a golf outing with a politician in Argentina on behalf of the distribution manager of CCC. The Telefonica executive explains that it is customary in Argentina for business owners to entertain local politicians and that it is a necessary part of securing appropriate licenses for the CCC-Telefonica distribution relationship in Argentina. One day after the golf outing, the Telefonica executive sends a bill to CCC for the golf expenses, including equipment, food, and drinks ordered by the group. If CCC pays the bill, will the company potentially violate any U.S. laws? If so, does the law apply to these circumstances? Will CCC be at a competitive disadvantage if it follows the law?
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