International Business: Competing in the Global Marketplace
International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
Question
Book Icon
Chapter IC, Problem 20.3CDQ
Summary Introduction

Case summary:

On the purchase of Company SE, Company M caught attention from a lot of people. Purchasing Company SE on cash deal bases created a good opinion in the people’s mind on Company M. $8.5 billion was the total amount paid by Company M; those funds were collected from foreign countries. In order to avoid paying of taxes, the company has to not send back its foreign earning to Country U.

Country U firms have collectively $2 trillion in foreign countries that are said to be untaxed profits. The tax rate of Country U is 35%; many companies are doing business throughout the world by keeping the cash unused. For example, Company M has $100 billion cash funds outside Country U; it also includes few low-income tax countries namely Country S, Country I, and Country B.

Shareholders are benefited from not paying the income taxes in Country U; this is due to few financial decisions. The company was not able to address how the Country U tax funds were able to benefit the whole country. At this stage, Country U was revising its tax code; therefore, there may be changes in Country’s U corporate tax.

Characters in case:

Company SE.

Company M.

Country U.

To determine: The reason why the Company M holds so much of cash than paying back to Country U, and the opportunity in holding cash and the potential benefits to shareholders if the cash is returned to Country U.

Introduction:

A shareholder is an individual, institution, or company who owns at least a share in a company stock. They are the owners of the company. They take part in both success and failure of the company. They are also known as stockholders.

Blurred answer
Students have asked these similar questions
how to caculate the future value?
Use literature to say why semi- structured interviews and a focus group to state why these are good methods of qualitative study
You are employed by an external audit firm that is hired by JBltd, a privately owned incorporated business. Accounting records are maintained on a computer using proprietary software. You have worked on the audit for three years and this year you are in charge of the audit. Your assistant is a newly recruited business graduate who has done an accounting course but has no practical experience. Because of the small size of the company there is limited opportunity for segregation of duties. You decide, as in previous years, that the appropriate audit strategy is to obtain evidence primarily through the performance of substantive procedures. You also plan to perform the audit around the computer as the proprietary software is known to be reliable and details of all transactions and balances can be readily printed out. On arriving at the company's premises in December 2019 to perform the final audit on the 31 October 2019 financial statements, you obtain a copy of the year end bank…

Chapter IC Solutions

International Business: Competing in the Global Marketplace

Ch. IC - Prob. 3.1CDQCh. IC - Prob. 3.2CDQCh. IC - Prob. 3.3CDQCh. IC - Prob. 3.4CDQCh. IC - Prob. 3.5CDQCh. IC - Prob. 4.1CDQCh. IC - Prob. 4.2CDQCh. IC - Prob. 4.3CDQCh. IC - Prob. 5.1CDQCh. IC - Prob. 5.2CDQCh. IC - Prob. 5.3CDQCh. IC - Prob. 6.1CDQCh. IC - Prob. 6.2CDQCh. IC - Prob. 6.3CDQCh. IC - Prob. 6.4CDQCh. IC - Prob. 6.5CDQCh. IC - Prob. 7.1CDQCh. IC - Prob. 7.2CDQCh. IC - Prob. 7.3CDQCh. IC - Prob. 7.4CDQCh. IC - Prob. 7.5CDQCh. IC - Prob. 8.1CDQCh. IC - Prob. 8.2CDQCh. IC - Prob. 8.3CDQCh. IC - Prob. 8.4CDQCh. IC - Prob. 8.5CDQCh. IC - Prob. 9.1CDQCh. IC - Prob. 9.2CDQCh. IC - Prob. 9.3CDQCh. IC - Prob. 9.4CDQCh. IC - Prob. 9.5CDQCh. IC - Prob. 9.6CDQCh. IC - Prob. 9.7CDQCh. IC - Prob. 10.1CDQCh. IC - Prob. 10.2CDQCh. IC - Prob. 10.3CDQCh. IC - Prob. 10.4CDQCh. IC - Prob. 11.1CDQCh. IC - Prob. 11.2CDQCh. IC - Prob. 11.3CDQCh. IC - Prob. 11.4CDQCh. IC - Prob. 11.5CDQCh. IC - Prob. 11.6CDQCh. IC - Prob. 11.7CDQCh. IC - Prob. 12.1CDQCh. IC - Prob. 12.2CDQCh. IC - Prob. 12.3CDQCh. IC - Prob. 12.4CDQCh. IC - Prob. 12.5CDQCh. IC - Prob. 13.1CDQCh. IC - Prob. 13.2CDQCh. IC - Prob. 13.3CDQCh. IC - Prob. 14.1CDQCh. IC - Prob. 14.2CDQCh. IC - Prob. 14.3CDQCh. IC - Prob. 14.4CDQCh. IC - Prob. 15.1CDQCh. IC - Prob. 15.2CDQCh. IC - Prob. 15.3CDQCh. IC - Prob. 15.4CDQCh. IC - Prob. 15.5CDQCh. IC - Prob. 16.1CDQCh. IC - Prob. 16.2CDQCh. IC - Prob. 16.3CDQCh. IC - Prob. 17.1CDQCh. IC - Prob. 17.2CDQCh. IC - Prob. 17.3CDQCh. IC - Prob. 17.4CDQCh. IC - Prob. 18.1CDQCh. IC - Prob. 18.2CDQCh. IC - Prob. 18.3CDQCh. IC - Prob. 18.4CDQCh. IC - Prob. 19.1CDQCh. IC - Prob. 19.2CDQCh. IC - Prob. 19.3CDQCh. IC - Prob. 19.4CDQCh. IC - Prob. 20.1CDQCh. IC - Prob. 20.2CDQCh. IC - Prob. 20.3CDQCh. IC - Prob. 20.4CDQ
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing