A friend in a certain SE Asian country has just started a business
(let's call it "Company A") importing medical supplies.  He faces the
following problem:  He wishes to purchase supplies from a company
(Company B) in the U.S., and Company B is happy to sell to him.  But
my friend has three problems with his own country:
 
1) This is an environment where bribes and kickbacks are the norm, not
the exception.  For him to do any kind of business in selling these
goods, it is a given that certain people involved in purchasing
decisions -- ie, purchasing agents, pharmacists, administrators, etc.
-- will be holding their palms out under the table, and expect them to
be properly greased.

2) Second, my friend's country is not fully free market-oriented, and
requires that his company's net gains on any sales be limited to no
more than 25% over cost.

3) Third, this Asian country does not recognize "kickbacks" as
legitimate, declarable expenses.

Company B is aware of this problem and COULD solve it by inflating the
numbers on the invoices they ship with the goods.  But they're
unwilling to do this.  (Which is quite understandable, given that it
could well end up causing legal problems on THEIR end.)

Now, for my friend to "play by the rules" would mean instant
bankruptcy.  I've no doubt this is a problem that many many others
have had to deal with in the past.  I'd like to know how it is best
approached.

Thanks.