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Finance in a Global Context :, The balance of payments, OIP (1) - Coggle…
Finance in a Global Context
:
Tax considerations and exchange rates
International Tax Rates
Tax rates and multinational corporations
Transfer Pricing
Multinational Group Trade
Cross-boarder tax rules
Exchange rate issues for business
Foreign Exchange Market
Demand for UK Currency
Supply / Demand for current
Competition in markets overseas
Increase products demanded abroad
Base Erosion and Profit Shifting
BEPs
Erosion of national tax bases
Multinational companies
Taxing the Supply Chain
Tax Incentives
Economic and Financial Flows in globalised word
International financial institutions
IMF
Aim - to help countries in financial trouble
International Monetary Fund
The World Bank
189 member countries
Goal - eradicate extreme poverty
play an important enabling function for the global economic system
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Economic and financial flows in a globalised world
Current Account
Registers payments for exports for trade goods / services
Capital Account
Records all transfers of capital to and from abroad
Financial Account
Records financial inflows and claims from abroad
Foreign direct investments
form of investment
Financial Assets bought / sold
Sell products / services in countries around world
Global Imbalances
Countries have more assets than others
Public Sector
controlled by government
Private Sector
not controlled by government
Role of multinationals
Responsible for economic and financial flows
Provide customers with innovative products / services
Policy making increasingly influenced
Choose where to keep their cash
Choose where their expenses and profits are recorded through transfer pricing
Fundamentals of international financial reporting
IFRS Standrards
International Financial Reporting Standards
Why jurisdictions have different rules
Court Rules
Own laws made & interpreted in different places
Managing national economy
Information for investors
Borrowed Finery
Imperialism Taxation
The balance of payments
