MNC Word
MNC Word
MNC Word
but managed from one country. Generally, any company or group that
derives a quarter of its revenue from operations outside of its home
country is considered a multinational corporation.
Tax Cuts
Multinationals can enjoy lower taxes in other countries for exports and
imports, an advantage that owners of international corporations can
take at any given day. And although not all countries can have lower
tariffs, there are those that give tax cuts to investors to attract more
international companies to do business in these countries.
Job Creation
When international companies set up branches in other countries,
employees and members of the team are locals. That said, more
people are given employment opportunities especially in developing
countries.
The first trading bloc was created by the North American Free Trade
Agreement (NAFTA) which is the treaty that established free trade and
open markets between Canada, Mexico and United States.
The European Open Market is the second trading bloc and was created
by a similar agreement among the 12 western European nations of the
European Economic Community and eliminates tariff barriers to create
a single marketplace.
The third bloc is called the Mercosur Group and consists of many of the
countries in South America.
Different home countries apply varying tax rates and rules to the
global earnings of their own multinationals.
As a general practice, the domestic government claims jurisdictions
over all the income of a Multinational Company wherever earned.
However, it may be possible for a Multinational Company to take
foreign income taxes as a direct credit against its domestic tax
liabilities.
For example:
(POWERPOINT)