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Finance in Globalisation - Coggle Diagram
Finance in Globalisation
Economic/Financial Movement
International Monetary Fund
Stability
Exchange rates
International payments
Framework
Cooperation
No competitive devaluations
World Bank 🏦
189 Countries
Governers
Policy makers
Ministers of finance
Foreign Direct Investment
Multinationals
Innovation
Technology👨🏼💻
Power Imbalance
Minimalises Competition
Lobbyists
Influence Taxes
Peculiarities/Choices
Currency Chosen
Cash Storage💷
Recording information
Global Imbalances :
Public/Private sector spending
surpluses
Tax
Cross Border Rules
Technology led to complexity
Countries guarding tax processes
Geography and Boundaries 🌍
Tax Evasion :forbidden:
Not Reporting/Paying
Tax Avoidance :warning:
Shift of Profits
Take Advantage - Different rules
Further Profits
Transfer Pricing
Multinational company
Price Set🤑
Profit allocation between Countries
Impacting Tax Payments
Arms Length Principle 📊
Price Set - Equal to Independent Businesses
Reports 📁
Different Jurisdiction
Legal System
Culture
Political
Taxation Systems
Economic environment :recycle:
Business Complexity
HIstory
Scandals
Colonial/International Influence
Source of Finance
Investor Protection✅
Equity/bank finance
IFRS Standards 📚
Comparability/transparency
Reduces prep costs
presentation
Disclosure
Evolution
Stewardship
National management
Information for investors
Foreign Legislation
Taxation
Exchange rates📈
Foreign Markets
Strong Currency💪🏼
Stability
High Demand
Low Inflation
High interest
Attractive Market
Weak currency⛓️💥
Instablitiy
Low interst rates
Expensive Imports
High Inflation
Cost of Living ⬆️
Economic Growth
Demand
Exports/Investment/tourism
Political Stability
Government Intervention👨🏼⚖️
Risk
Fluctuations
Recession
Increase in international sales
⬆️profit
Increase import costs
⬆️Inflation
Low Interst Rates