VDM Keitirima, J: Enhancing Institutional Capacity in Developing

Globalization has promoted the growth of international business. Indeed global markets have become the arena for competition between multinational corporations. However globalization has its side effects and could as well fuel corruption. For example money laundering becomes easier when the financial proceeds of corruption can be freely transferred from country to country in open international capital markets. The globalization of financial markets facilitates cross boarder financial fraud. International business corruption affects adversely national economies as well as the international business environment. It is recognized that worldwide corruption is endemic and cannot be easily eradicated. But it can be reduced to make the international business operations more efficient. Corruption is found in all walks of life. Naturally it is endemic to the business world too. Internationally it is even more pervasive and it affects many aspects of business from the cost of operations to business relationships and even to government and government relationships. Corruption had been accepted as no more than a cost of doing business in the developed world.