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Finance in a Global context - Coggle Diagram
Finance in a Global context
Tax
United Kingdom (UK)
Her Majesty's Revenue and Customs (HMRC)
Income Tax
National Insurance
Inheritance tax
Council tax
United States of America (USA)
Income tax
Sales tax
Excise tax
Payroll tax
Internal Revenue Service
Estate tax
Gift tax
Some countries have none or limited tax laws, which some people or businesses may open accounts in to take advantage
Exchange Rates
Can be volatile, meaning liable to change rapidly and unpredictable
Weaker exchange rate means increased exports
Stronger exchange rate means decreased exports
Currencies
United States Dollar (USD)
Euro
Great British Pound (GBP)
Australian Dollar
Canadian Dollar
Indian Rupee
Swiss Franc
Japanese Yen
Foreign Exchange Market (FOREX)
Can cause complications in global business
Businesses may hedge rates to mitigate risks
International Financial Institutions
IMF (International Money Fund)
Established in 1944
Primary purpose - ensure the stability of the international monetary system
Mandate updated in 2012
The World Bank
Aim to end extreme poverty
Represented by Board of Governors
Established in 1944
189 member countries
IFRS (International Financial Reporting Standards) Standards
No IFRS standards mandate in:
United States of America (USA)
India
Japan
China
Developed by International Accounting Standards Board (IASB)
Global accounting standards
Increases credibility and access to investment opportunities
Financial Statements
Requires project management