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Finance in a Global Context - Coggle Diagram
Finance in a Global Context
1. Global Trade & Economic Flows
exchange rate fluctuations directly affect trade balances
Balance of Payments (current, capital, financial accounts)
Global imbalances (surplus vs deficit nations)
Exchange rate movements shaping trade competitiveness
2. Foreign Exchange (FX) Markets
Supply & demand for currencies
Appreciation/depreciation effects on exports/imports
SME vulnerability to volatility
Risk management (hedging, futures, market diversification)
3. Foreign Direct Investment (FDI)
multinational corporations structure FDI to take advantage of tax regimes
Multinational expansion and global production networks
Role of MNCs in world trade
National competition for investment (tax, labour, regulation)
4. Taxation & Profit Shifting
Transfer pricing and arm’s length principle
Profit shifting to low tax jurisdictions
Impact on developing countries
Reform ideas: unitary taxation, country by country reporting
5. Financial Reporting & Regulation
accounting rules shape how profits are reported
Need for comparable global standards
regulatory frameworks determine how attractive a country is to investors
IFRS vs national systems
Influence of history, taxation, and legal traditions
Regulation shaped by stewardship, investor needs, and stability
6. Competitiveness & Strategy
Porter’s Diamond (national advantage)
Five Forces (industry competition)
How global finance shapes firm strategy, costs, and market access