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International finance - Coggle Diagram
Balance of payments
Accounts
Current account
Payments
Monetary transfers
Income
Imports/exports
Capital account
International transfers
Financial
Inflows
Claims & liabilities
Non-residents
Financial assets
Investments
Direct
Portfolio
Reserve assets
Must balance
Surplus
Exports > Imports
Saving > investing
Results in:
Defecit countries
Borrowing
Asset selling
Economic indicator
Transaction tracking
Individuals
Companies
Government bodies
Foreign Direct Investment
#
Operational control
Measured
% of GDP
Transfer pricing
Companies in same multinational group
Price setting
Enables movement of Profit and expenses
Affects taxes
#
Transfer mispricing
#
Trade mispricing
Unrelated firms
#
Arms length principle
Trade as if unrelated
Aim
Prevent mispricing
Taxation
Avoidance
Solution
Unitary taxation
Income apportioned appropriately
Taxed accordingly
Obstacles
Path dependency
Vested interests
Technical issues
Institutional resistance
Needs
Country-by-country reporting
Currency
Exchange Rates
FOREX
Determines rates
Currency strength
Falling
Higher import costs
Higher inflation
Changed by
Demand
Causes of change
Overseas income
Domestic interest rates
Speculation
Supply
Causes of change
Domestic incomes
Overseas interest rates
Speculation
McBurger index
Purchasing power parity
Central banks
#
Bank of England
European Central Bank
Regulations
Protection
Economic health
Stewardship report
Communications
Managers
Investors
Financial reporting
Information
Company performance
Current investors
Financial markets
Potential investors
Tax authorities
#
Managers
Families
Anglo-Saxon
US/UK
Commercial code
Continental Europe
IASB
Standards
IFRS
Financial statements
Balance sheets
Income statements
Cash flow statement
Provides
Summarised information
Assets
Liabilities
Equity
Income
Expenses
Changes in equity
Cash flows
Mission
Transparency
Accountability
Efficiency
International Financial Institutions
Global economic stability
IMF
International monetary stability
Lender
Struggling economies
World Bank
Promotion
Prosperity
Eradication
Extreme poverty
Disruption
Global financial crisis
Covid
