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Finance in a Global context - Coggle Diagram
Finance in a Global context
Economic and Financial flows
Important concepts
Foreign direct investment
Portfolio investments
The flow of money to and from a country
Global imbalances.
Public sector spendind
Private sector spending
Countries that have deficits
Countries that have surpluses
The balance of payments
International Financial Institution
International Monetary Fund
(IMF)
Main Purpose
Ensure stability of the International monetary system
Internation payments for citizens to transact with each other.
189 members
Top 10 countries
USA,Japan,China,Germany,France,UK,Italy,India,Russia, and Brazil
World Bank
10,000 employees
120 offices worldwide
189 member counties
Main purpose by 2030
Promote shared properity
End extreme poverty
Represented by a Board of Govenors
Untimate policymakers
PriceWaterhouseCoppers (PWC)
Both collect data yearly.
Paying Taxes'
Contains information on 190 economies
'Internation Tax Rates'
Tax compliance
Number of payments
Corporate income tax
VAT
Tax rates
Propety tax
Multinational corporations
Technologicial changes
Hard for governments to collect all tax receipts
Tax avoidence
Shift profits across borders to take advantage of tax rates.
Tax evasion
Illegal practice of not paying taxes
3 more items...
Exchange Rate issues
Volatile exchange rates
Affect value of companies assets, liabilities,
and operating profit
Changes in the value of the pound
benefits, exporters and tourism
Challenges for importers.
Provide Financial Support
Loans
Grants
Multinationals companies
Upsides
Economies of scale
Job Creation
Choose own currency
Choose where they can keep their cash
Stability
Innovation and research (R&D)
Downside
Market Domination
Political Influence
Dependency risks
Environmental Impact
International financial reporting
International Financial Reporting Standards Foundation (IFRS)
Supply of information to
the international capital markets
Rules are not the same in
any two countries
Stewardship report
establishes a track record
Aimed at small businesses
19th century Industrial Revolution
Separation between professional manager
and investor
Capital Market Function
or
Financial Reporting
International Accounting
Standards
Board (IASB)
Information on, assets, liabilities,
equity, income, expenses,
cash flow, and changes in equity