Tempo Ltd

Case 6-1 Tempo Ltd

This study is about the Faith Terim that accepted a barter exchange from North Korea and there is an issue when he is not very sure about the process of the transaction.

Terim is an entrepreneur who that established their own business called Tempo Ltd. He focus of his business to buy goods from nearby foreign sources and then find buyers for those products in the domestic Turkish market. His Romanian partner, George Hagi proposed a deal that Terim could not refuse. It was to trade Turkish chemicals for lumber in North Korea. Terim’s customer usually will pay in cash, but a barter exchange is not a problem. The problem is that North Korea was a communist regime and provided support to the terrorist activities all over the world. This mean that North Korea and those with whom it traded were under tight scrutiny from both the United Nations and the United States and because of this it was illegal in Turkey to make transactions with North Korea, so in order for Terim to trade with North Korea, he come with two option first is by have the lumber shipped to Romania then transported to Turkey by using truck under Romanian documents or have the lumber shipped to Syria, transported by truck to the Turkey boarder, and then bribe officers at the gate to let the lumber into the country.

Question

1. Should Terim let somebody else complete the transaction because he knows that if he doesn’t sell to the North Korean, someone else will?

If I were in this case, I will let someone else to complete the transaction and I think it would be wise for Terim to do the same thing because this deal was too risky. There are other costs and risks involved in these proposed transactions not mentioned in the case. For example, If Terim gets caught not only would have to pay a fine, but he would also develop a bad reputation for illegally trading with a country involved with terrorism. This would put his business in jeopardy because other companies might want...