Tempo LTD case
Case 6-1 Tempo Ltd.
In this case Fatih Terim is trying to decide whether or not to enter a barter trade with North Koreans in which he would send Turkish chemicals in exchange for kereste (Lumber). Because of trade sanctions between Turkey and North Korea this transaction would not be legitimate because there would be some bribing and other extracurricular activities to complete the deal. Terim tried to justify going through with the deal because he concluded that if he did not make the deal then someone else would. If it were me in this situation, I would not pursue the deal no matter how substantial because there are some significant risks involved. If caught he would have to pay a fine of double the sum of the value of goods entering the country. If Terim had much of a business after that, he might have a hard time gaining the trust of potential customers and suppliers in the future because they would be aware of his shady business tactics. On the other hand if the deal works out then Terim could become very rich and have a large new customer with which he can do business in the future. I would suggest passing on this opportunity because there are too many variables where problems can arise and make this a “no sale”.
The total cost to get the goods to Turkey through Romania would include $42,000USD for shipping from North Korea to Romania, $10,211USD to generate false documents, $6,250USD for handling fees at the Liman (port), $3,100USD for Suez Canal charges, and $15,000USD for trucking the goods into Turkey for a total cost of $76,561USD which does not include the cost of the chemicals which was not given. The lumber should sell for $500,000USD once inside of Turkish borders. This would take 43 days.
The total cost to get the goods to Turkey through Syria would include $33,000USD for shipping from North Korea to Syria, $50,000USD for the rusvet or bribe at the border, $6,250USD for the handling fees at the Liman (port), $3,100USD for Suez Canal
In this case Fatih Terim is trying to decide whether or not to enter a barter trade with North Koreans in which he would send Turkish chemicals in exchange for kereste (Lumber). Because of trade sanctions between Turkey and North Korea this transaction would not be legitimate because there would be some bribing and other extracurricular activities to complete the deal. Terim tried to justify going through with the deal because he concluded that if he did not make the deal then someone else would. If it were me in this situation, I would not pursue the deal no matter how substantial because there are some significant risks involved. If caught he would have to pay a fine of double the sum of the value of goods entering the country. If Terim had much of a business after that, he might have a hard time gaining the trust of potential customers and suppliers in the future because they would be aware of his shady business tactics. On the other hand if the deal works out then Terim could become very rich and have a large new customer with which he can do business in the future. I would suggest passing on this opportunity because there are too many variables where problems can arise and make this a “no sale”.
The total cost to get the goods to Turkey through Romania would include $42,000USD for shipping from North Korea to Romania, $10,211USD to generate false documents, $6,250USD for handling fees at the Liman (port), $3,100USD for Suez Canal charges, and $15,000USD for trucking the goods into Turkey for a total cost of $76,561USD which does not include the cost of the chemicals which was not given. The lumber should sell for $500,000USD once inside of Turkish borders. This would take 43 days.
The total cost to get the goods to Turkey through Syria would include $33,000USD for shipping from North Korea to Syria, $50,000USD for the rusvet or bribe at the border, $6,250USD for the handling fees at the Liman (port), $3,100USD for Suez Canal