BA10-Mod5Lect1 Notes

BA10-Mod5Lect1 Notes - Module 5 Lecture 1 4/18 Global...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Module 5 Lecture 1 4/18 Global Business & Entrepreneurship Guest Lecture: Dean Campbell on the Budget Deficit CA is the world’s 6 th largest economy Budget deficit of US is a bigger problem than CA Dean Campbell deals with employers and the high costs of doing business in CA If CA budget not in balance, employers are worried o When market goes down, afraid the state would spend the same and make up the difference from employers Real threats Chairman of Cisco is John Chambers Electronics & machinery company o No plans to build new plants in CA o No expansion here, given up manufacturing products in CA Competition with Other States How does state tax employer when it is spread over different states? Is income reported in every state? o CA has a 9% corporate tax, 6 other states left with nothing o Decide on a formula for dividing overall income o May be based on # employees in state/ total employees o May be based on # plants in state/ total plants CA has a relatively high tax compared to other states o Companies have incentive to go to less costly states o Employers say they emphasize sales , not employees Impose Regulation in one state versus another o Do cost-benefit analysis o Ex. Greenhouse gases, pesticide, requires regulation in CA o Give chance for cost-benefit, not hitting a specific %...
View Full Document

This note was uploaded on 04/01/2008 for the course UGBA 10 taught by Professor Xuanmingsu during the Spring '08 term at Berkeley.

Page1 / 3

BA10-Mod5Lect1 Notes - Module 5 Lecture 1 4/18 Global...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online