Yes, it is the better for the country C, if A wins the contract. However, the people who makes the decision for the country C cares about their bribes; that's w

Yes, it is the better for the country C, if A wins the contract. However, the people who makes the decision for the country C cares about their bribes; that's what third world politicians, bureaucrats do--get fat bribes for their retirements, investments--because that's the best deal for themselves. You can see the same phenomenon in large companies even in US: managers find silly projects, and get more head count, then keep expanding the beast, without caring about the large interests of the company.