B207 TMA 2

IMF IMF

190 Members

Crisis support

Policy advice

Tackling corruption

Money laundering

Tax avoidance

Balance of payments Payments

Current account

imports/exports goods, services

Individual transfers

Large deficit can help short term

Long term can be destabilising

247 Words

Capital account

Records capital

International movement

Financial account

Records financial inflows

Liabilities to non-residents

Direct investments

Portfolio investments

Reserve assets

Financial capital held by monetary authorities

Global companies Multi national companies (MNC)

Positives

Negatives

Tax avoidance

Innovative products

Concentration of power

Influence of ploicy making

Higher costs

Force out small firms

Using tax havens

Improve consumer quality of life

Exploitation of economic areas

50 Words

10 Words

48 Words

26 Words

Gather greater user data

Transfer pricing

Arm's-length principle

Hard to implement

Taxation Taxation

Multi national companies

Ambiguous

Easily abused

Transfer mispricing

Tax avoidance

Subsidiary A (raw material)

Subsidiary B (processing) tax haven

Subsidiary C (final market)

Unitary taxation approach

Combined reporting

Political will required

fair treatment

Billions saved in tax recovery

Obstacles

Path dependancy

Vested interests

Technical issues

Resistance to change

Multinational interference

Development required

50 Words

Pixaby.com

Small to medium enterprises (SMEs)

Vulnerable to exchange rates

Exchange rate volatility

Market forces

Supply & demand

Strong/weak sterling

29 Words

Affects sale prices

Affects supply prices

Problematic

Traders need stability

World bank World bank group

Promote shared prosperity

Extreme poverty eradication plan

International accounting standards board (IASB) Accounting

International financial reporting standards (IFRS)

Preparation of financial reporting

Over 100 contires

Improves quality

Improves comparability

Improves transparency

Facilitates business

Increases credibility

Improves access to credit

Improves investment opportunities

Simplifies financial reporting (MNC)

2 years to implement

Affects different areas of business.

47 Words