You have been negotiating with a representative of a government in South America to sell them products for a new state building in the country's capital. The negotiations are final and there is a fixed price and delivery date set. The representative of the government suggest to you that you prepare an invoice at twice the price negotiated. The government will pay the full price through a foreign bank and your firm will pay the representative the difference as a commission paid in US dollars into the representatives personal bank account in New York. He argues that this is customary business practice in his country. Should you make this payment? Does it matter that this payment is customary in his country? Is there any real victim in this case. Please discuss these.
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