Are there any economic beneffits from global corporations ?

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
I am arriving to the conclusion that global corporations do not beneffit the economy at all.
They actually harm it because they tend create cross country monopolies, evade taxes and practice dumping.
But I would like to hear if someone thinks global corporations have some beneffit.

I must underscore the word global . Please notice corporations are an absolute must for every healthy economy, specially medium and small corporations.
 

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
61,558
Reaction score
10,762
Points
2,030
Location
Chicago
I am arriving to the conclusion that global corporations do not beneffit the economy at all.
They actually harm it because they tend create cross country monopolies, evade taxes and practice dumping.
But I would like to hear if someone thinks global corporations have some beneffit.

I must underscore the word global . Please notice corporations are an absolute must for every healthy economy, specially medium and small corporations.

They actually harm it because they tend create cross country monopolies,

You'll have to explain what a cross country monopoly is.

evade taxes

Ford builds cars in the US. Ford builds cars in Mexico. Ford builds cars in Europe.
Where is the tax evasion?


and practice dumping.

Selling things too cheaply? Why is that a problem?
 
OP
CultureCitizen

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
Ford builds cars in the US. Ford builds cars in Mexico. Ford builds cars in Europe.
Where is the tax evasion?
Example ( not quite the real thing , but close enough ) :
Ford USA produces parts for cars which at build at Mexico, but it does so by selling the spare parts at on over-price, decreasing the net income of cars produced by Mexico and increasing the net income of Ford USA.
Ford USA then gets services from the Corporation at Luxemburg at an overprice to compensate for the extra generated by the parts sold at an over-price.
 
OP
CultureCitizen

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
Selling things too cheaply? Why is that a problem?
Since the products are being dumped ( via subsidies ) , the locals can't sustain competition.
After a couple of years they either have a very small market share or ar forced to close.
The corporation now has a monopolic position.
True , given a trial it may be split, but if this happens at all it will be after years of having a monopolic position in the market.
 

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
61,558
Reaction score
10,762
Points
2,030
Location
Chicago
Ford builds cars in the US. Ford builds cars in Mexico. Ford builds cars in Europe.
Where is the tax evasion?
Example ( not quite the real thing , but close enough ) :
Ford USA produces parts for cars which at build at Mexico, but it does so by selling the spare parts at on over-price, decreasing the net income of cars produced by Mexico and increasing the net income of Ford USA.
Ford USA then gets services from the Corporation at Luxemburg at an overprice to compensate for the extra generated by the parts sold at an over-price.
Ford USA produces parts for cars which at build at Mexico, but it does so by selling the spare parts at on over-price

I wish we had an agency that looked at the books of a company like Ford and set up rules about inventory and purchases from subsidiaries, to assure they paid the proper amount of taxes.
We could call it the I.R.S.
 
OP
CultureCitizen

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
I wish we had an agency that looked at the books of a company like Ford and set up rules about inventory and purchases from subsidiaries, to assure they paid the proper amount of taxes.
We could call it the I.R.S.
Oh , they pay VAT, but the proffit is offshored to a country with low corporate tax.
 

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
61,558
Reaction score
10,762
Points
2,030
Location
Chicago
Selling things too cheaply? Why is that a problem?
Since the products are being dumped ( via subsidies ) , the locals can't sustain competition.
After a couple of years they either have a very small market share or ar forced to close.
The corporation now has a monopolic position.
True , given a trial it may be split, but if this happens at all it will be after years of having a monopolic position in the market.
Since the products are being dumped ( via subsidies ) ,

What subsidies?

The corporation now has a monopolic position.

So if Ford sells too cheaply, because of some imaginary subsidies, they'll drive (hehe) every other car maker out of business? Seriously?
 

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
61,558
Reaction score
10,762
Points
2,030
Location
Chicago
I wish we had an agency that looked at the books of a company like Ford and set up rules about inventory and purchases from subsidiaries, to assure they paid the proper amount of taxes.
We could call it the I.R.S.
Oh , they pay VAT, but the proffit is offshored to a country with low corporate tax.
Ford pays no VAT here. How do you imagine Ford can "offshore" profit on a car they built and sold here?
 
OP
CultureCitizen

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
Since the products are being dumped ( via subsidies ) ,

What subsidies?

The corporation now has a monopolic position.

So if Ford sells too cheaply, because of some imaginary subsidies, they'll drive (hehe) every other car maker out of business? Seriously?
It is subsidy because they sell the products below they break-even price and they can operate with losses for one or two years while they get rid of the competitors. After they have secured the monopoly they rise the prices and recover the losses they got during the first two years of operations.

I have not seen this in the car industry (where it might be too expensive ) but certainly in the food sector.
 
OP
CultureCitizen

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
I wish we had an agency that looked at the books of a company like Ford and set up rules about inventory and purchases from subsidiaries, to assure they paid the proper amount of taxes.
We could call it the I.R.S.
Oh , they pay VAT, but the proffit is offshored to a country with low corporate tax.
Ford pays no VAT here. How do you imagine Ford can "offshore" profit on a car they built and sold here?
That was not the example I posted, but certaily they can follow the same strategy.
They pay for services at an overprice from the corporation which is located in a tax paradise .
 

EdwardBaiamonte

Platinum Member
Joined
Nov 23, 2011
Messages
34,573
Reaction score
2,124
Points
1,100
I am arriving to the conclusion that global corporations do not beneffit the economy at all.
.
dear, a liberal lacks the IQ to come to a conclusion. Global corporations exist because free people elect to buy from them; presumably because their price and quality raises their standand of living faster than any other option. We don't need a lib Nazi interfering with our freedom to improve our standard of living.
 

CrusaderFrank

Diamond Member
Joined
May 20, 2009
Messages
115,519
Reaction score
28,263
Points
2,220
Location
Location, location
I am arriving to the conclusion that global corporations do not beneffit the economy at all.
They actually harm it because they tend create cross country monopolies, evade taxes and practice dumping.
But I would like to hear if someone thinks global corporations have some beneffit.

I must underscore the word global . Please notice corporations are an absolute must for every healthy economy, specially medium and small corporations.

 

EdwardBaiamonte

Platinum Member
Joined
Nov 23, 2011
Messages
34,573
Reaction score
2,124
Points
1,100
The corporation now has a monopolic position.
too stupid used cars as an example of monopoly even when half the companies are on the verge of bankruptcy owning the extreme global competition have the best quality and lowest prices in the world just to survive.

Can we conclude anything other than that liberalism is based in pure ignorance?
 

williepete

Platinum Member
Joined
Aug 7, 2011
Messages
3,848
Reaction score
1,392
Points
380
Location
Troposphere
Economic beneffits from global corporations?

Superb investment opportunity for John Q. Public to fatten his retirement portfolio. I've always kept a mix of domestic and off shore stock holdings. You, your broker and your financial advisor all need to keep an eye on current events and the board running these companies but that's just standard investment due diligence that I'm sure you're using to manage your investments.

Ca-Ching $$$
 

EdwardBaiamonte

Platinum Member
Joined
Nov 23, 2011
Messages
34,573
Reaction score
2,124
Points
1,100
moreover the perfect idiot liberal thinks global competition will lead to monopoly more than national competition. OMG!!
 
OP
CultureCitizen

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
I am arriving to the conclusion that global corporations do not beneffit the economy at all.
They actually harm it because they tend create cross country monopolies, evade taxes and practice dumping.
But I would like to hear if someone thinks global corporations have some beneffit.

I must underscore the word global . Please notice corporations are an absolute must for every healthy economy, specially medium and small corporations.

Oh, my , this is just what I wanted to avoid.
Crusader, I am not against free markets. I am trying to see if allowing global corporations in a free market yields benefits or not, as compared to having free trade with only local corporations .
 

EdwardBaiamonte

Platinum Member
Joined
Nov 23, 2011
Messages
34,573
Reaction score
2,124
Points
1,100
Crusader, I am not against free markets. .
you are you just lack the IQ as a liberal to know it.

the rule is: the more with whom you trade the richer you get, the fewer with whom you trade the poorer you get.

Why not print it out and post on fridge for daily review?
 

EdwardBaiamonte

Platinum Member
Joined
Nov 23, 2011
Messages
34,573
Reaction score
2,124
Points
1,100
. I am trying to see if allowing global corporations in a free market yields benefits .
OMG how utterly stupid and liberal. Its like asking if you get 10 quotes will you get better quality and price than if you get 2 quotes. Dear, can you tell us the answer?
 

Toro

Diamond Member
Joined
Sep 29, 2005
Messages
80,497
Reaction score
18,082
Points
2,180
Location
Surfing the Oceans of Liquidity
Yes, of course.

This economist won the Nobel Prize in economics for his theory of when economic transactions should occur within a corporation and when they should occur without.

Oliver E. Williamson - Facts

In his theory, decisions should be made within the corporation when it is more efficient to do so.

And that includes multinational corporations.

As for the OP, almost all of the largest 1000 corporations in the world are multinational corporations. It's pretty hard to argue with a straight face that they are all trending towards monopoly. They are large because they offer products people want or need and are efficient at providing them, thus offering a tremendous boon to humanity.
 
OP
CultureCitizen

CultureCitizen

Silver Member
Joined
Jun 1, 2013
Messages
1,932
Reaction score
140
Points
95
you are you just lack the IQ as a liberal to know it.

the rule is: the more with whom you trade the richer you get, the fewer with whom you trade the poorer you get.

Why not print it out and post on fridge for daily review?
Baiamonte ,
For once please try not to answer as a complete imbecile spambot.
I am not attacking free trade , but rather the use of global corporations which try to push all the income towards a certain region.
Now , thik about the economic benefit of a global corporation vs a local one ( yes, even a local one with foreign investment) or stop spamming the thread.
 

Most reactions - Past 7 days

Forum List

Top