Ans- The Company clearly is in dilemma over its choices. While it may seem that the government authorities and licensing agencies are unnecessarily delaying the clearance to the detriment of the country. The country is not only losing an investment opportunity, but also the chance to create job and earn foreign exchange. Clearly the officials are compromising on their integrity.

It is also clear that the firm is not fully capable of understanding the nitty-gritty of doing business in the country e.g. in many developing country like India public enterprises are often protected by the laws and deeper understanding needs to be there to overcome legal hurdles relating to the issues (Jakobsen & Torp, 2001). Under these developments the suggestion to employ the daughter of an official is totally unacceptable, not only because it will set a wrong precedence, but also because many of the concerned officials would get greedy and want some kind of favor from the company in future. There expectations will be clearly based on the fact that if the firm can stoop so low to get permission, then they can also compromise in future when any issues concerning the authorities arises. So, it will be wrong premise to think that it will be acceptable for the firm to employ the daughter of the officials to get entry in the country. Also, there is no guarantee, though the official won’t admit it, that the licenses will be approved, if his daughter is employed by the firm.

Under these circumstances the firm has few options. First, it could make strategic alliance with a capable and successful local business firm. The local firm will have more experience, capabilities and expertise to handle such obstacles. In this way, the firm can concentrate on business part of setting the plant and production and leave the administrative jobs to their local partner. However, it should be ensured that the partner sticks to integrity and does not adopt any unfair practice, while getting permission and approvals.

Alternatively, the company can hire local representatives for arbitration, though their use should be minimized e.g. law firm, or felicitating agency, with experience on such issues, on fee basis ( Cavusgil, & Ghauri, 1990). As they would be more aware with the local culture and regulatory systems, the clearance matter would be solved sooner. They should be paid as per the progress of the approval process.

Also, it may contact local business forums for helping them on the matter. These forums could lobby with the government for quicker solution. For this same reason the firm could contact the trade and commerce ministry of the government on their own. This may help the company, as direct dialogue will eliminate the possibilities of manipulations by intermediating entities.

Thus, if the firm adopts any of the above methods for its entry in that country, its actions will be not only within ethical boundary, but will also serve it to establish a sustainable business there.

Reference-

1) Cavusgil, S. T., & Ghauri, P. N. (1990). Doing business in developing countries: Entry and negotiation strategies. (1st ed., p. 113). Lonodn: Routledge.

2) Jakobsen, G., & Torp, J. E. (2001). Understanding business systems in developing countries. (1st ed., p. 57). New Delhi: Sage Publication India Pvt Ltd.