The questions below are designed to assess your understanding of the material.
Please read the cases below and chose your answer from the options provided. Please substantiate your
1. You run a Kodak shop and a female customer wants to hire a video operator with a camera to videotape
already have an assignment. The only person you can spare is an apprentice. You know he would do the
job very well, but the customer wishes to have a professionally made tape. Do you:
Take the order?
Frankly tell the client of your problem and allow her to make a decision on her own?
Tell her to go elsewhere?
Take the order and frantically start calling your competitors to see if they can spare a good
2. You own a small business and you need a loan for further company development. You are sure that the
services that your competitors have not yet dreamt of. Thanks to this innovation, you will outsmart all
your competitors. You have a designed a business plan and submitted it to a conventional bank X. A bank
clerk promises to respond very soon. Some time later you receive a notification from a bank that the loan
will be extended. However, you have a vague suspicion that your competitor has just started to render
such a service.
3. You are a department head in a consulting firm. You have just finished some marketing research for
evening. A woman calls you and introduces herself as vice-president of Trade Co. She asks you to
immediately fax her the resume of your research. You locate the material requested and see that it is
classified “For internal use only”. The Vice President you report to is on his honey-moon and you would
not dare bother the company President to authorize release of materials.
How ethical is the request of the Trade Co. vice president?
What shall you do?
What facts should you take into account or what questions should you ask the caller before
4. You run a small beauty parlor and your customers usually book their appointments in advance. A client
have her hair dyed as well. The second client is already waiting. Shall you:
Tell the hair master to blend the color and dye the first client yourself despite the fact that you are
Competition constitutes the backbone of market economy. However, a market can function efficiently
and benefit consumers only in the environment of a legal, fair and free competition. Fair competition
requires that all players - the state, the business as a whole and individuals follow certain rules.
Looking for a rare sample of more or less fair competition in Azerbaijan, one might consider the
as the result of tough competition. We would abstain from qualifying competition in this sector as
absolutely fair, as owners of these enterprises had different starting points: some earned their starting
capital, some inherited it, while yet others stole or took bribes. Still, competition in this sector is really
fair, as no powerful pressure from the outside can force a customer to chose a place to eat. This is the
most reasonable explanation why the number of cafes and places for public festivities in Baku are
The most frequently used methods of unfair competition in a developed market economy are as follows:
enticing of key employees of competing firms;
gathering of confidential information on competitors;
dumping policies or charging below production cost;
subversive activity at competitor’s production facilities;
information wars or use of negative PR methods in media.
Our market, which is, to be frank, very far from civilized, does not resort to such intricate methods,
except for negative PR. The main instrument of unfair competition in our market is corruption, especially,
its following forms.
Subornation of high rank officials is a quite common method. . According to some sources, “a
Even high ranking public officials are forced to recognize that “we do have such public
obstacles in the way of both foreign and local investors”.
Pressure from above in a decision-making process is another common technique, for example,
during the awarding of tenders. The Japanese Bank of Reconstruction and Development officially
refused to recognize Sumitomo, a Japanese company, as the winner of a tender for construction of the
gas pipeline Karadag – Severnaya hydro-power station. It should be recalled that the Bank financed
construction of the pipeline in Azerbaijan. The tender was participated in by four Japanese companies
and some media sources wrote of the unscrupulous conduct of Sumitomo and its informal agreements
with Azerbaijan public officials.
Patronage of certain industries by individual public officials or their direct involvement in economic
activities is very often accompanied by abuse of public resources.
R.Gajiev. Corruption and Economy, edited by S.Bagirov, Publication of Transparency Azerbaijan, Baku, 2002, p. 69
X.Ismailova, One of the Major Problems – Abuse of Power by Public Officials, interview with Mahmud Mamedguliev,
S.Sultan oglu, Japanese Bank Said “No” to Corruption in Azerbaijan, Zerkalo newspaper, Banks and Business column, 15