The definition found from the internet about globalization mentions: "The worldwide movement toward economic, financial, trade, and communications integration." In facts, the term of globalization implies an interconnection between the overseas corporations with the free transfer of capital, goods, services. Under globalization, positive effects put on cross boarder transfer and trading as the soften of trade barriers with the rapid growth of globalization. The following video can help us know clearer about globalization.
Honestly, economic globalization do give a lot of benefits to different countries which lead to the rapid rise of multinational corporations(MNCs) in recent years. The numerous benefits illustrated below:
1. It improves communication flow
This can ensure the transferring of important and advantageous information within organizations and people. With the enhance of advanced technology, it helper to save a lot of time on trading and exchange of goods or properties. Which means the MNCs can therefore get more profits under globalization.
2. Economic benefits is encouraged
The term of globalization emphasis on "de-localization", where corporations can easily make transfer or business across distance. Therefore the function of investors can performed in different nations and earn large profits in between.
3. Better transport
Under globalization, countries and corporations will make more efforts to improve their transport and infrastructures quality, in order to attract more MNCs and investors to invest in their places.
The above points are benefits that economic globalization brought, but they are not the major effects to the economic world. The major advantage is it increase liquidity.
4. Liquidity or cash flow is encouraged
With the emphasis on free trade under globalization, it increases the cash flow. Which the capital is redistributed to the more potential parties and result in higher degree of liquidity. "Globalization therefore provides investors the privilege of only taking the financial risks they want to."
With the better liquidity and the redistribution of capital, the number of MNCs increase faster where the profits made by MNCs become greater. Nevertheless, the taxed income increase in scale as well. This can also help to explain why more and more MNCs choose to evade their tax and transfer their capitals to the tax haven with lower tax rates. The enhancement of liquidity under globalization is the major cause to the growing of tax evasion incidence in current years.
In this article, it provide detailed information on the effect of globalization. It promote the trading between different countries around the world. The emergence of MNCs was a good example under this condition. It is no doubt that globalization create another channel for people or firm to evaded tax.
回覆刪除This article has talked about the relation between globalization and tax evasion and pointed out the effects of globalization. However, there are only the advantages and viewers may not have a comprehensive understanding of it. Also, you may talk about both pros and cons of different stakeholders. Beside, the video is good for understanding the basic information of globalization.
回覆刪除The blog provided the basic information of globalization and the benefits of the multinational corporations under globalization. I agree with your point that the globalization is the major cause of tax evasion as those multination corporations are more easy to open their subsidiaries in some tax havens.
回覆刪除This article had explain the meaning and impact of globalization in detail. International trading is encouraged by globalization. The society are improved as a benefit of globalization. I had better understanding of globalization after watching the video which contains in this article.
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