Business Law (International) Coursework Example | Topics and Well Written Essays - 1500 words

Business Law (International) - Coursework Example The United States Supreme court has stated that "The legal right of an individual to decrease the amount of what would otherwise be his taxes or altogether avoid them, by means which the law permits, cannot be doubted." [Wikipedia] Tax can be averted by: To minimize their tax liability within the United States and to try to reduce tax disadvantages, a growing number of American corporations have been moving their headquarters offshore, a procedure known as â€Å"corporate inversion.† A corporation opens a subsidiary in another country’s jurisdiction. That subsidiary then buys up the shares or assets of the parent corporation, becoming the legal â€Å"Mother Company,† with the U.S. facility now transformed into the subsidiary. Virtually nothing else changes as a result of this inversion. Manufacturing, jobs, sales, and marketing remain as they were before. It is basically just a paperwork process to shift the company’s ownership outside the United States to avoid such fiscal disadvantages as double-taxing of earnings. It is not costless. The formal selling of the shares by the stockholders results in a capital gains on which they then have a tax liability to the U.S. government, even though those sold shares are merely transferred into shares of the newly relocated company. Yet a growing number of companies have chosen to make this move with shareholder approval because of the long-run tax savings for the corporation. (Clarkson, 2008) One company, Seasons Steel of Australia, Sydney, made this shift to Bermuda because they estimated that while capital gains taxes owed by shareholders to the U.S. Treasury would be as much as $150 million as a result of the inversion, the company would save as much as $30 million per year in tax liabilities. Assuming a 2.5 percent interest rate, over 10 years this would result in a savings of $263 million in present-value terms. At the same time, the company estimated that the higher profitability of the firm resulting from the

Effectiveness of Tourism Research Paper Example | Topics and Well Written Essays - 2000 words

Effectiveness of Tourism - Research Paper Example However, different countries rely on different sources for generation of income. These sources vary from small basic household products to large-scale destructive missiles (weapons of mass destruction), from daily used dairy products to fashion and clothing accessories, from agricultural products to the latest high-tech gadgets, and from medical equipment to services related to hospitality. Hence, there are countless ways by which countries are earning their livelihoods and generating profit. Tourism is also one of the important ways adopted by many countries of the world, and as a result these countries are generating large amount of income. Tourism fulfills the basic human needs of rest and recreation and can give maximum fruits to countries in many ways (Smith, 1994). It is beneficial for countries that are already developed, and for countries that are willing to develop, tourism can play an effective role provided they have sights to offer to tourists (Octaviano, 2012). Tourism c an play a vital role in raising the GDP of the countries; it can be fruitful in many ways for under-developed countries as these countries usually lack power and are looking for ways to shift their status from that of a third world country to that of a first world country (Urry, 2003). For instance, the role played by Philippines government in the promotion of tourism has worked for the country in a number of ways, and the tourism history of this country can be used as a â€Å"road map† for other under-developed states. Philippines did some structural adjustments with the help of World Bank in mid 70s (1973-1974) and initiated a program to endorse tourism. Moreover, different countries during the same tenure also made structural adjustment programs to promote tourism. They adopted variety of techniques: for instance, they attracted investors and transnational corporations that have in most cases the control over resorts, hotels and transportation; they helped programs funded by other countries, providing them with full government support to enable them to carry out their operations; and they took loans from various different sources in order to create an infrastructure for tourism expansion. The Philippines Tourism Strategy as a Role Model for Under-Developed Countries The Philippines tourism strategy can be considered as a classic example of what tourism has to offer to under-developed countries (â€Å"The Philippines†, n.d.). As it is believed, tourism in Philippines emerged due to major contributions by Marcos (dictator) in 1973 (Lumang, 2008), who had this vision of making Philippines a City of Man. Chasing that vision, he restlessly worked on engaging international hotels chains and other businesses to come and invest in the country in order to promote tourism. Marcos made relaxed and favorable policies for these foreign businesses so that their stay in the country could be prolonged. More than three decades have passed, and still tourism in Philippines is giving fruits and has matured in a number of ways. It has shown growth and is still following the same trend. Moreover, this trend is achieved because of the development plans, goals, policies