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GLOBALISATION and FINANCE - Coggle Diagram
GLOBALISATION and FINANCE
International financial institutions
IMF
Stability of the international monetary system
World Bank
Cooperative of 189 countries for financial legislation
financial flows between countries
-balance of payments
current account, capital account, financial account
global imbalances
surplus accounts vs current deficits accounts
public sector and private sector spending
governments running financial deficits
FDI's
Multinationals investing in foreign countries with plants and offices
portfolio investments
buying and selling of financial assets
MULTINATIONALS
Provide services and products globally
Issues of tax avoidance and concentration of power
Tax considerations
tax policy issues
cross-border tax cooperation is difficult
countries like to be able to increase or lower tax rates when they choose
Tax evasion
base erosion and profit shifting (BEPS)
Exchange rates
changes in exchange rates
buying and selling of currencies
governments intervening in the currency markets
International financial reporting
Financial regulation for:
a more stable business environment
information for investors
economic development
colonisation, imperialism and domination
Different accounting regulations
International Accounting Standards Board highlights the most important rules for accounting
USA, Japan, China and India are without IFRS standards mandates.
Many factors come into play affecting regulators and what they deem "important information"
Accounting rules are often a result of many years of legislations
new regulations often have unintended consequences
different countries have different priorities
Cycle of accounting regulations (The Contingent Model)