What is the difference between a multinational corporation and a trans-national corporation?
US firms warn Irish over tax move
The Irish government has been given a stark warning from some of the biggest American companies in Ireland on the risk of a mass exodus if the country’s low corporation tax rate is raised.
What is the difference between a multinational corporation and a trans-national corporation? And what will be the growing consequences for US firms as voters imagine they are versus changes happening at an accelerating pace in real terms?
In that I am not going to answer this question this morning, I believe it is a topical discussion. Could use some links, however.
There’s no easy answer here.
The 12.5% corporate tax rate is a scam that allows the Irish government to skim tax revenues that by all rights ought to be going to the US and various EU countries.
That having been said, raising that rate now will likely lead to many corporations changing the paper locations of “processing centers” and thus lead to a sharp falloff in Irish gov’t revenue at the worst possible time.
Delaware, here they come (back!).
S
Looking forward to those links.
I really enjoyed the brogue when I called for assistance on a product I had in 1999.
So, we get to hear more hindi, and tamil accents!
How about this? A multinational corporation makes its legal home in a major economy. A transnational corporation makes its legal home in Liberia. 😉
It will be intersting too see what happens if corps cannot use Ireland for a lot of phony-baloney intangible property rental schemes to evade US corporate taxes.
A multinational hasn’t had the operation and the trans- has?
LOL….just got back tomight…ok, ok I ‘ll work one it.
multi-national organization remains a between nations, inter-national, form in which senior mgt continues to take a particular nation-state as home territory while others are ‘add ons’ –very subjective, very open to change during priods of contraction. [during mid-late 1980’s, harvard bus rev had some excellent articles on types of inter-national corp reorganization being attempted].
trans-national, as the prefix implies, have moved beyond consideration of any single nation as ‘home’, which has become in fact the entire globe — other than by definition, the inter has been overcome, transcended. A number of CEOs have, from mid 1980s on, made this very explicit…perhaps most so by Ford in the later 1980s,,,,,,a quote i could dig up if i ever unpack books and papers from my NM to FL move [and further recover healthwise].
“American companies really haven’t been sinking much of their gains back into domestic investment,” said Jared Bernstein, senior economist at the Economic Policy Institute in Washington. In the United States, nonresidential fixed investment as a percentage of G.D.P. fell to 11.56 percent in 2005 from 12.55 percent in 2000. Thanks to globalization and the opening of new markets, Mr. King said, “it’s increasingly difficult to argue that companies themselves are attached to a country.” He notes, for example, that Vodafone, the giant British telecommunications company, has more than 80 percent of its sales and employment outside of Britain. And as of 2002, Mr. King found, the 50 largest multinational companies had 55 percent of their employees and 59 percent of their sales outside of their home countries.”
http://www.globalpolicy.org/component/content/article/221/46982.html
Invest Globally, Stagnate Locally
The Growth of Transnational Corporate
Networks: 1962–1998*
http://jwsr.ucr.edu/archive/vol11/number2/pdf/jwsr-v11n2-kentor.pdf
http://jwsr.ucr.edu/archive/index.php
Welcome back juan. Can you e-mail me?? angrybearblog@gmail.com
😉
Google has 2,000 employees in that “paper location”. Google is saying that if you raise the rate, we will move those employees to Singapore or some other location. Ireland is concerned about the actual jobs.