Final answer:
The Foreign Corrupt Practices Act (FCPA) focuses on two main provisions: 1) transparency requirements and 2) anti-bribery provisions.
The answer is option ⇒b) Anti-bribery provisions
Step-by-step explanation:
The Foreign Corrupt Practices Act (FCPA) consists of two main provisions:
- 1. Transparency Requirements: The FCPA requires companies to maintain accurate and transparent financial records. This provision aims to prevent companies from concealing bribes or illegal payments in their accounting systems. By ensuring transparency, the FCPA promotes accountability and helps to detect any corrupt practices.
- 2. Anti-Bribery Provisions: The FCPA prohibits companies and individuals from offering, promising, or giving bribes to foreign officials to obtain or retain business. This provision aims to combat corruption and promote fair competition in international business transactions. The anti-bribery provisions apply to U.S. companies and individuals, as well as foreign companies listed on U.S. stock exchanges.
To illustrate the importance of the FCPA, consider an example: A U.S. company is bidding for a construction project in a foreign country. The FCPA's anti-bribery provisions would prohibit the company from offering bribes to foreign government officials to secure the contract. Additionally, the transparency requirements would oblige the company to maintain accurate records of all financial transactions related to the project.
The answer is option ⇒b) Anti-bribery provisions