Please enable JavaScript.
Coggle requires JavaScript to display documents.
Finance - Coggle Diagram
Finance
Economic and financial flows
Balance payments
tracks transactions
Identify business opportunities arising
Foreign direct investments
Investments
Global imbalances
Inequalities between countries
Portfolio investments
International financial flows
competition between countries
Global imbalances
Public sector
Money into economy
More spending
Imbalance
Private sector
Current accounts
Supluses
Trading partners tackle deficits
Saving more and spending less
Deficits
Global imbalance = unsteady exchange rates
Multinationals
Problems
Tax avoidance
Inlfuenced decisions
Antitrust policies
Base erosion
Profit shifting
Increased power
Reduced competition and higher costs
Advantages
Innovative products
Free services
Choose currency
Transfer pricing
International tax rates
Paying taxes
Taxes paid by businesses
Taxes and contributions
Profit and corporate income tax
Small taxes/ fees
Taxes paid by employer
Tax competitions
Exists in international tax system
Transfer pricing
Arms-length principle
Product of genuine negotiation
Leeway to minimise tax
Alternatives are simpler
Transfer mispricing
Conventional approach
Alternative approaches
Combined reporting
Compatible with each other
Determine principles are complied
Formulary apportionment
Unitary taxation
Exchange rate issues
Changing exchange rates effects
Companies assets
Liabilities
Operating profit
Foreign currencies
International Financial Institutions
World Bank
Longer term approach
Promote shared prosperity
Eradicate poverty
International Monetary Fund
Ensure stability of system
Help financial trouble
Economic stability
International financial cooperation
Financial support