________ offer services including export management companies, ...

[dbose]

________ offer services including export management companies, Webb-Pomerene associations, and international trading companies.
 
  A) Intermediaries
  B) Wholesalers
  C) Exporters
  D) Distributors

Question 2

How do countries differ in terms of taxation? In regards to taxation, why do some MNEs turn to offshore financial centers? Why are offshore financial centers a concern to the OECD?
 
  What will be an ideal response?

[KKcool]

Answer to Question 1

A

Answer to Question 2

Countries differ in terms of the types of taxes they have (income versus excise), the tax rates applied to income, the determination of taxable income, and the treatment of foreign-source income. Offshore financial centers such as Bahrain, the Caribbean, Hong Kong, London, New York, Singapore, and Switzerland deal in large amounts of foreign currency and enable companies to take advantage of favorable tax rates. A major concern with OFCs is the tax avoidance dimension of their activities. The OECD has been working closely with the major OFCs to ensure that they are engaged in legal activity. It uses the following key factors in identifying tax havens: 1. no or only nominal taxes, 2. lack of effective exchange of information (especially bank secrecy), 3. lack of transparency, and 4. no substantial activities. Although not trying to tell the sovereign countries what their tax rates should be, the OECD is trying to eliminate harmful tax practices.