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Finance in a global context - Coggle Diagram
Finance in a global context
IMF
last resort loans
failed
Currency
Economy
Low international rating
Provide stability
Assistance for struggling countries
Focuses
Poorer countries
providing sustainable finance
not always loans
Aid
refugees
influences
Top 10 economies
Financial direction
Current world issues
How help is distributed
World Bank
Focuses
Development
Funding
Infastructure
Farming
improve economic prospects
Provide stability
Bank for countries
Flows of captial
FDI
inflow proportion of GDP
Balance of payments
Current account
Exports
Transfers / Income
International
Imports
Capital
Inbound and outbound international payment record
Financials
Similar to accounts for a business
records liabilites
Assets
Compare countries
Global imbalances
Current account surplus
Export more
Payments to larger than payables
Current account Deficit
Import more than export
Long term affects of debt imbalances
negative effects for deficit countries
less buying from export countries
Public vs Private sector
Multi National Companies (MNC)
Benefits
Spread of technologies and services
negatives
overtake whole market segments
Lobbyists
Can have negative impact on society
anti trust issues
Tax related
Industry related
Structures that avoid tax
earning redirected to tax havens
Transfer pricing
choose where funds are stored
Which currencies
Exchange rates
SME's
Have to pay tax in national border
PwC
Tax and contributions
TTR (total tax rate as a %)
Profit
Labour
Financial transactions
Tax moddler
view tax competition
Exchange rate fluctuations
Causes issues with international suppliers
Taxation
Arms length principle
Unrelated companies
Considered usual business
Related companies
issues with artifical prices
tax avoidance
Devolping nations at higher risk
transfer pricing
OECD and UN Tax commited endorsed
Company choose where to pay tax
Unitary taxation
Taxed where they operate the business segment
apportioned income
Issues
very technical
lack of will to change methods
OECD
Transaction flows
Taxing incentives
BEP driven rules
Digital economy tougher to tax and regulate