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Finance in a Global Context - Coggle Diagram
Finance in a Global Context
Financial Flows
Balance of Payments
Current Account
Registers
Imports
Exports
Incomes
Transfers of money
Fluctuations
Deficit
Import > Export
Why?
Saving < Buying
Lack of domestic product supply
Availability of resources
Surplus
Export > Import
Why?
High Demand for domestic product
Saving > buying
Political trade strategy
Capital Account
Records
Transfer of capital
Financial Account
Financial inflows
Investments
Direct
Foreign Direct Investment (FDIs)
Operational
Control
Ownership
2 more items...
Geographical
Meet demand
Access to labour
Portfolio
Reserve Assets
Global Imbalances
Taxation
Transfer pricing
What?
Inter-group trading
Arms-Length
Prices at retail rates
Transfer Mispricing
Artificial prices
Impacts
For Business
Lower tax payments
Higher equity
For Governments
Loss of tax revenue
Higher administration costs
Why?
Pay less tax
Unitary Taxation
Why?
Minimise tax havens
Tax income for all nations involved
Obstacles
Path Dependency
Institutional resistance
Vested Interests
Resistance
Removes benefit of transfer pricing
Technical issues
Reporting
What?
Profit apportioning
Financial Reporting
Mission
Bring...
Transparency
Enhances...
Comparability
Quality of data
Accountability
Reducing information gap
Efficiency
Identify
Opportunities
Risks
Country by Country
Reporting
Countries
Subsidiaries & affiliates
Performance
Tax charge
Assets
Value
Costs
Gross & Net
Stakeholders
Investors
Visibility
Historical Performance
Financial Health
Customers
Fair Pricing
Brand reputation
Trust in product
Government
GDP
Taxation
Market Regulation
Competition
Market share
Cost of Goods sold comparison
Exchange Rates
Fluctuations
Impacts
On Businesses
Increase in costs
Increased pricing of products
Decrease in costs
Higher profit margins
On Consumers
Causes
Market trends
Demand for £ abroad
Supply of £ to foreign markets
Price elasticity
Currencies
