Nguyen Tien Thanh

Nguyen Tien Thanh - Student No: E0800015 1/ According to...

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Student No: E0800015 1/ According to the article, what are the three critical aspects of a firm’s national How are these aspects changing as the firm becomes global? Justify your answer with identity relevant examples. According to the article, three distinct aspects of a firm’s national identity are a legal home, a financial home, and a home for managerial talent. Until lately, global firms have located their legal home, their financial home and their managerial home in the country where they originated and that home country has determined the firm’s national identity. These homes are now being separated and reallocated advantageously and the home for managerial talent can itself be served by many locations. Those aspects are changing as the firm becomes global, they indicates changes in the relationship between the firms and the nations. If firms can choose the most proper home for their managerial talent, the most beneficial financial home, and the best legal home, what will determine the best home for each of the functions? The most traditional of headquarters is the managerial home and key decision makers. For each critical headquarter function manager must consider the location of relevant labor force, local regulations that might deter or invite certain functions to customers and suppliers. A global firm can have different homes for different functions in order to draw on different local talent pools or chances. A firm also has to have a place where its shares are listed and traded and its finance function is located. This home, financial one can now be distinct from the original birthplace of a firm, from where most of its managers are located and from its legal home. A firm is a legal person, a citizen of the country where it is incorporated. A legal home creates obligations and opportunities for it. First, corporate residency determines the firm’s tax obligations at the corporate and investor level. There are wide variations in tax rates and in the definition of taxable income across countries. For example, a country can choose to tax the income earned within its borders or the income earned by its citizens regardless of where it is earned. Similarly, a country can choose varying ways to tax dividend income and can afford
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Nguyen Tien Thanh - Student No: E0800015 1/ According to...

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