4500.18 - Germany Japan UK What Does Policy Impact •...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic 8: Taxes, regulation, and government intervention Dealing with Barriers Transfer pricing and tax evasion Affiliate in high-tax country sells components at low price, minimizing profit there Affiliate in low-tax country buys component, maximizing profit there Managing blocked currency funds example: Pepsi Cola example: Braniff Airlines
Background image of page 1

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

View Full Document Right Arrow Icon
Taxation Why are there taxes? – Government spending – Inflation – Budget really is always balanced, either by taxes or inflation – Social engineering Different tax methods – Customs duties – Income tax (example: U.S.) – Sales tax – Value-added tax (examples:
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Germany, Japan, UK) What Does Policy Impact? • Regulatory Environment • Government Spending – Consumption – Investment • Locus of Decision-Making – Public Sector • National • State • Local – Private Sector • Issues: Efficiency, Effectiveness, and Fairness Consequences of Poor Policy • Economic inefficiency – Example: bank president cleans gutters – Example: highly-trained accountant mows lawn • Slower growth • Disincentives for investment • Flight Benefits of Good Policy • Greater economic efficiency • Faster growth • Attract foreign investment • Attract resources fleeing other countries...
View Full Document

{[ snackBarMessage ]}

Page1 / 3

4500.18 - Germany Japan UK What Does Policy Impact •...

This preview shows document pages 1 - 3. Sign up to view the full document.

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