Based on globalization the multinational entities (MNE) benefit from low corporate income taxes, through the different schemes to reduce their tax burden. Therefore, the Globalization of the economy made a Tax system of each country to adopt its local policies to the needs of international business. During the long period the international taxation rule by different Multilateral agreements, Double Tax Treaties, and other agreements. In addition, to the trade agreements WTO, OECD, and other organ
The pandemic has a very great impact on the global economy, where the businesses around the world are counting costs and are thinking about how the recovery would look like. There are many challanges faced inorder to operate in the global economy and to raise the economy of the countries. The major impacts that the countries are still trying to resist are the stock markets flux. The share markets have effected the value of pensions and the individual savings accounts, as a result the central ban
New worries about the long terms effects of the Coronavirus on the global economy have arisen following the release of the Economic Intelligence Unit's (EIU) fourth quarter economic forecast. The concerns center around the predicted long-term "zombification" of developed economies on a global scale. The features associated with a zombie economy were only seen previously in Japan: since its crash in 1989, Japan's economy has retained slow growth, low inflation and high debt. Previously, any econo
In the first term of Trump’s presidency, he focused on bringing manufacturing jobs back to United States by increasing tariffs on import goods and re-negotiating trade agreements. This article talks about how these policies help create jobs in steel industry and companies like Whirlpool, LG and Samsung while cutting jobs whose manufacturing depended on import goods. On one hand increased tariffs added a significant amount to government revenue, on the other hand, it increased prices of those goo
The COVID-19 pandemic has negatively affected young people between the ages of 16-30 in terms of economic scale and employment. Since the pandemic struck back in early 2020, young people, who range from teenagers, current university students, and post-grad students, have struggled to find employment or keep their jobs for the long term. Young people make up for a third of the US unemployment levels, have begun moving back in with their parents (a move not seen since the Great Depression), and th
With the amount of cases increasing over time the corona virus, or covid-19, the situation can still get worse. In states such as Texas and Florida buisness is getting restricted once again. With the United States leading countries in terms of corona virus cases compared to other countries with Brazil being second most but with barely half the cases. With colleges reopening and buisnesses like bars and clubs opening the cases may increase by a huge margin. In this article the World Health Organi
The United States recently recorded the worst quarter in its history this past second quarter of 2020. With the intial low understanding of what COVID-19 really is, the United States' economy plumetted deeply with the loss of jobs, exports, imports and adjusted business safety regulations. But as the third quarter numbers came in it has recorded a tremendous increase of 33.1%from July to September. Although, even with such a great quarter (relatively one of the best in US history) the economy is
As the COVID-19 pandemic has unfolded it has truly shown how our country is prepared to deal with economic crisis such as this. It has brought to life the numbers and info on the money invested into different areas and industries in our nation. Based on this article it shows that the US public health budget is not prepared for a crisis like the COVID-19 pandemic. It has shown that hospitals are not given the direct financial support they really need to properly treat patients. On a normal day by
The unprecedented COVID-19 crisis has broken India's economy in a brutal way. The consequence was an increase in India's unemployment rate and a decrease in the growth rate of the Gross Domestic Product ( GDP). The Government of India and the Reserve Bank of India took various steps to get the economy back on track like policy changes, reforms, relief packages, bank loans, and infrastructure development plans, etc. No doubt all these measures were appropriate and timely, but in the time of such
The pandemic has forced workplaces to have employees work remotely. Studies show that the ability to work from home is lower among low-income workers than for high-income workers. It has also been studied that sectors that can go remote saw a smaller decrease in employment. With these facts, it is clear than lower-income workers are more likely to lose their jobs because of the pandemic - this allows more room for income inequality. It is estimated that the average Gini coefficient for 2020 for
The current global COVID-19 pandemic has seen countries all over the world going into lockdown in order to limit travel across borders. For many countries, this has resulted in a drastic decrease in imports and exports which has the potential to create weaker economies in countries that have a currency that is weaker in comparison to currencies from countries they trade heavily with. One such country is the Philippines.
The Philippine economy has seen a drop in trade imports and even steeper drop
Nearly every country is getting affected day by day due to the pandemic and governments of these countries are taking many measures to help people and economy survive in this tough situation. Now that we are almost a year into the pandemic, governments are in a situation to either end their support or to reduce it to some extent due to various economic issues. This article talks about difficulties people are to face as government support in UK comes to an end. Mortgage holidays and job furloughi
On Friday, the Federal Reserve and Treasury Department updated their pre-existing Main Street Lending Program (MSLP). The MSLP was developed to provide relief for businesses affected by COVID-19 with $600 billion in loans to small and midsize businesses across the country. The Fed is encouraging banks to provide loans to these businesses by purchasing 95% of eligible loans, modifying fees that banks can charge borrowers, and lowering the minimum loan requirement. Over time, this minimum dropped
‘COVID-19 outbreak has triggered unusually fast outflows of dollar funding from emerging market economies. The effect of Corona virus on forex markets is inevitable and stock markets are facing great disturbances because of the possibility that the pandemic will put a limit to economic activity because it does not cease or reduce. US dollar fell and has resulted into higher volatility ,we can surely say that Corona virus has a huge impact on these global markets and a decelerating economy would
Majority of the Central Banks around the world swung into action and expanded their balance sheets, brought yield curves to control and reduced interest rates as part of the recovery program. These swift actions have kept the global economy afloat. To reduce the burden on the banks and promote credit growth, central banks reduced the reserve ratios. Central banks expanded their balance sheet by buying government and private sector debt. These actions have ‘injected’ liquidity into the system whe
The Federal Reserves of the United States has pledged to go above and beyond to do all it can to save the American economy and the financial system from crumbling in light of the corona virus pandemic and its impact on the world as a whole.
Before the creation of the federal reserve system, the security and stability of US banks was far- fetched. There were many instances of bank runs during financial crises occurrences. These recurring financial crises brought up the need to centralize banking a
In this article by the New York Times the author Ben Casselman talks about how the United States has experienced its fastest economic growth in history. But the author makes the point that even though the United States has recently experienced its fastest economic growth in history doesn't mean we as in the U.S have a strong economy. In the article there is a very good quote about unemployment. Unemployment is one of the reasons why our economy isn’t as strong as it should be and you can blame t
The article “You’re Not Welcome Here: How Social Distancing Can Destroy the Global Economy” on NPR shares “the pandemic delivered the most severe blow to the U.S. economy since the Great Depression as gross domestic product collapsed and millions of jobs were lost”. The changes we are experiencing as a result of the pandemic are scary and the restrictions put in place are countering the normalcy of how humans typically interact, conduct their business, and, to put simply, live. A new restrictio
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