Please enable JavaScript.
Coggle requires JavaScript to display documents.
BLOCK 2 - Coggle Diagram
BLOCK 2
Global economic and financial flows
Role of international financial institutions
Economic support
Developing countries
International monetary fund
Provide stability
Exchange rates
United nations 1944
Last resort lender
Strategies?
Structure reforms
Growth friendly fiscal policy
Growth friendly monetary policy
World bank
1944
189 member countries
Goal?
End extreme poverty
Providing funds
Growth for bottom 40% in every country
Financial flows
Balance of payments
Current account
Transfers of money
Imports and exports
Capital account
International
capital transfer
Financial account
Inflows
Liabilities
Assets
Comparison between countries
Global imbalances
Large deficit
Higher taxes
Lower demand etc.
Corrected by government action
Large surplus
Role of multinationals
Operate in two or more countries
Expansion and knowledge
Exchange rate
Exchange rate issues
Bad exchange rates could increase customer price
Changes in cost
Buying supplies
Increased/ decreased buy power
Higher value of currency = increased
spending power
Use of difference currencies
In comparison to on another
Effect?
Business performance
Restricts market
Increased prices
A focus on domestic sales
Supply and demand
Determine value of currency
International finance reporting
Regulation evolution
Why?
Common standards
Response to economic evolution
Exchange of accounting knowledge
Stewardship
Thousands of years
Establish a track record
Past actions
'Word of mouth'
French commercial code
Annual inventory
Balance sheet
Using current values
To prevent bankruptcy
Industrial revolution
Investment into high-risk projects
Separation between manager
investor and finance
Capital market function
Auditing of books
US/UK Anglo-Saxon reporting
European commercial code accounting
Why jurisdictions have different rules
Cultural variabilities
Roman law
Government controlled
Common law
Accounting bodies
provided by company law
Different levels to each country
IFRS Standards
Transfer of knowledge
Provide support
Aims?
Transparency
Accountability
Efficiency
Comparable
Global accounting standards
Countries establish own mechanisms
City leadership and business opportunities
Role of modern cities
Cities can learn from each other
Face similar challenges
'Global village'
Share knowledge between cities
Housing
Transport
Bike schemes
Inequalities within cities
Easier to implement policies
between cities rather than
countries
Examples
Civic
Communities
Can bring in tourism
to an area
Can open new businesses
Political
Elected executives
Involves legislation
Managerial
Councils and partners
Companies helping to improve communities
Business
Contributes to local economy
Phone app for pub
Ring more people in
More jobs
Elements
Actors
Formal or informal
positions of leadership
Individuals and/or collectives
Structures
Arrangements that enable
City leadership
E.g elected (major)
Processes
Social
Political decisions
Fellowship
Tourism
Tax
International
Different tax rates for different countries
Government intervention
Fund public finances
162 economies with VAT
180 economics levied corporate income
Tax rates and multinational corporations
Tax avoidance?
Tax havens
Reduced competition
Higher cost