Economic and financial flows in a globalised world
balance payments
The current account
The capital account
the financial account
the whole account must balance, the balance of payments can help to understand the comparative position of a country in relation to others.
having surplus money isn't necessarily a good thing as it can case the counties in deficit to spend more money than they need. this negative demand will effect the global economy and could increase inflation rates.
foreign direct investments
"
they are distinguished from portfolio investments where assets are bought and sold abroad.
click to edit
jiant problem, the superstar company
superstar companies at the heart o the global economy
squas competiton
use dark arts of management to stay ahead.
bulking up/ company mergers is a global trend
new startups in america lowest scinse 1970s
tech jiants want as much data as they can about their custommers
New technology is allowing more barriers into entry
but slower growth is encouraging jiant companies to buy out rival companies
many large powerful companies dont pay tax as they use transfer pricing
multynationals can choose where to manage finances
choose where to keep cash
choose the curreny to store cash
lots of hedging and speculation
they can choose whwew their expenses are / trnasfer pricing.
can choose were profits are recorded and where they pay tax
click to edit