Many businessmen, like Pavlo Zhuk, have to choose between their personal ethics and business rules of their countries and the local rules of a foreign country.
In many countries, like Ukraine, if markets are not to deal with the allocation of people to jobs and of outputs to consumers, then some centralized coercive power is necessary to do the same thing1. Such power creates incentives for bribery, corruption and allocation according to the tastes of the central administrators2. If at the going prices and wages, there are not enough flats or plum jobs to go around, the local bureaucrat will often allocate some to those who pay the largest bribe, some to those with religious beliefs, hairstyles or political views that he likes, and only the rest to those whose names come up on the waiting list. During the final quarter of this century, increasing attention has been given to ethics concerns3. If Zhuk refuses to pay-off the tax officials, his friends and employees will lose their jobs and substantial sources of income. Taking into account facts and statistical results of the Third World countries, it is evident that Zhuk should pay off the tax officials to save his business in Ukraine.
Corruption of officials is of concern to many throughout the world. Corruption can affect the international marketer in many ways, both positive and negative. Following Cuervo-Cazurra (1996): “the official has an incentive to ask for a bribe to increase his or her income in exchange for a good that has little cost to him or her”4. Countries are using many measures to fight corruption with the intent of control, reduction, and ultimately elimination.