Competing in a Global Context.
von Albert Anan
1. Transfer pricing
1.1. When two companies that are part of the same multinational group trade with each other.
1.2. Arm's Length Approach
1.3. Transfer Mispricing
1.4. Unitary taxation
1.4.1. Path dependecy
1.4.2. Vested interest
1.4.3. Technical issue
1.5. Country-by-country reporting
2. Foreign Exchange Market (Reading 7)
2.1. Where the exchange rate is determined.
2.2. Exchange rate - The price of one currency in terms of another.
2.3. currency increase - appreaciation. currency decrease - depreciation.
2.4. Price elasticity
2.5. Price inelasticity
3. Financial Regulation
3.1. Stewardshhip
3.2. National Economy
3.3. Investor information
3.4. Borrowed Finery
3.5. Imperialism
3.6. Taxation
4. Financial reporting
4.1. Key objective: Provide information about assets, liabilities, equity, income, expenses, changes in equity and cashh flow.
5. Contingent model- Suggests there is a cycle in accounting regulations.
5.1. Equilibrium > Financial scandal > Consensus on solution > New regulation > Equilibrium > Unintended Consequence. (Haller & Walton, 2003).
6. IFRS
6.1. Standards/regulations that bring transparency, accountability and efficiency to global trade.
6.2. Standard development: Agenda consultation, Researchh programme, Standards developmet, Implemantation.
7. G-Localisation
7.1. Worldwide social relations which link distant localities.
8. World Trade Organisation
8.1. Ensure trade flows smoothly, predictably and freely.
8.2. Ensure that individuals, companies and governments know the trade rules around the world.
8.3. GATT (General agreement of trade and tariffs)
9. Competition
9.1. Absolute advantage
9.2. Comparative advantage
9.3. Porter's Diamond Model (1990)
9.4. Porter's 5 forces Model (1980)
10. Economic and financials
10.1. Balance of payments
10.1.1. Current account
10.1.2. Capital account
10.1.3. financial account
10.1.4. Global imbalances can be left to market forces and/or corrected by government action (Stretton, 1999)
11. Foreign Direct Investment
11.1. Investments of multinationals to establish plants/offices in other countries in order to produce or sell products.
11.2. aimed at securing operational control.
12. Means of Regulation
12.1. Common law
12.1.1. A lot of freedom is left to the courts in determining how the law is applied. Standard setting was carried out by proferssional accounting bodies.
12.2. Roman law
12.2.1. Standard setting is left to government hands.