Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economic and financial flows in a globalised world - Coggle Diagram
Economic and financial flows in a globalised world
Institutions
World Bank
End Extreme poverty by 2030
Control Global economic
Help Economic stability
International Monetary Bank
characteristics
Ensure economic stability
Short term approach
Annual Report 2016
Members
USA, Japan, China, top 3 countries contribuiting more
China, India, Russia, Brasil Emerging countries
189 members
Strategies
Growth friendly fiscal policy
Monetary policy
Structural reform
Corruption
Tax cooperation for better transparency
Improving training any corruption
Multinationals
Choose currency to keep cash
Choose where they expenses
Choose where to keep the cash
Small business
Hard to compete against multinationals
Exchange rates main issue
Shifts in demand
increase in UK interest rate
speculations about currency value
increase in income overseas
Shifts in supply
increase overseas interest rate
speculation about currency value
increase UK income
The balance of Payment
Indicator that tracks all transactions of a given countrie
Main parts
Capital account
Financial account
Current account
Position of a country in relation to other
Global imbalance
European commission (2016) aims to maintain capital account balance at sustainable levels
Adjustments made by government actions (Stretton, 1999)
Large and persistent deficit or surpluses
Failing re-investing from surplus countries can lead to a reduction of the circulation of money
Financial Crisis 2008
Portfolio investment
Foreign direct investment
500 larges multinationals (Guillen and ontiveros, 2012)
50% world trade
25% world production
Taxes
Indicators
time to comply
number of payments
Total tax rate
post-filing index
history
Cross-border tax rules (1920s)
Issue
Tax evasion
tax avoidance
Transfer pricing
Unitary taxation
Obstacles
Path dependency
Technical issues
Vested interests
Arm's-length principle (Same price for relate and unrelated companies)
Mispricing same multinational group. $1.1 trillion lost on tax revenue 2005-2007 (Christian Aid Report, 2009)
Financial reporting
roman law model
common law model
IFRS
119 jurisdictions use IFRS
Transparency, accountability, efficiency
standards
How to measure those items, and present them
related disclosures about those items
item should be an assets, liability, income or expense