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ABC Inc. is a leading manufacturer of integrated circuits (chips) and related software for such specialty markets as communications and mass storage, as well as PC-based audio, video, and multimedia. The company has also made significant strides in wireless communications. Its wireless products have been selling well in its already existing markets in the United States, Japan, and Europe. Like any company, Pegasus is eager to grow the business. It is now exploring the potential of expanding its wireless business to China. The government of China has made spending on wireless a priority. Wireless is really the only choice for China because of the high cost of burying the communications cables necessary in wired systems. China allocates frequencies and makes franchise decisions city by city, district by district. A 'payoff' may be required to get licenses (in many countries around the world). China alone represents easily $100 million of business per year. The company wants to maximize shareholder value, but the CEO wants to model ethical leadership. He has built a corporate culture characterized not only by aggressive R.
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