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Fnnance in a global context - Coggle Diagram
Fnnance in a global context
Economic and
financial flows
International
financial
institutions
International Monetary Fund
Founded: 1944 by the UN
Purpose: Promote stability of exchange
rates and international payments
The World Bank
Founded: 1944 by the UN
Made up of 189 member countries
Two goals to
achieve by 2030
End extreme poverty
across the world
Foster income growth of bottom
40% for all countries
Imbalances after
2008 GFC
Between public and private sector,
public sector spending had to
increase due to reduced consumer confidence
Tax and exchange rates
Paying Taxes - From PwC and the World Bank Group
Recording mandatory contributions
and taxes in a given year
Small/medium sized businesses
Profit or corporate income tax, social contributions and labour taxes paid by the employer, property, property transfer, dividend, capital gains, financial transactions, waste collection, vehicle and road, and any other small taxes or fees.
Transfer pricing
Shifting tax owed from countries where they operate to tax havens
Examples include Virgin Islands, Bermuda, Cayman Islands
Base erosion and profit shifting (BEPS)
Base erosion - erosion of national tax
Profit sharing - Moving profits from one country to another
Exchange rates
Appreciation and depreciation of rates between different currencies
Falling home currency value means home country exports less expensive abroad and imports more expensive
International Financial Reporting
International Financial
Reporting Standards
Foundation (IFRS)
Design common
financial reporting
standards
2016: Only remaining major markets
without IFRS standards are USA, Japan,
India and China
Different countries accounting systems gradually harmonised through shared characteristics