power point presentation on global is at ion has eliminated the need for offshore business
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8/2/2019 Power Point Presentation on Global is at Ion Has Eliminated the Need for Offshore Business
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Globalisation Has Eliminated The Need For
Offshore Business
By RamjunumRandhirsingh
ID : 1020291
8/2/2019 Power Point Presentation on Global is at Ion Has Eliminated the Need for Offshore Business
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Globalisation
Definition
Historical background
Rationale and Reasons
Factors that have helped spread of globalisation
Key players
Pros and Cons
Benefits and Problems Complexities and controversies
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Definition of Globalisation
Globalization refers to the process of integrationacross societies and economies. The phenomenonencompasses the flow of products, services, labor,finance, information, and ideas moving acrossnational borders. The frequency and intensity of theflows relate to the upward or downward direction of globalization as a trend.
It is the breaking down of trade barriers with the
avowed aim of increasing efficiency of production inthe world. Globalisation (specialisation and free trade)also implies that goods and services should beproduced by those countries and firms that producethem at lowest cost.
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RATIONALE FOR GLOBALISATION
A primary economic rationale for globalization is reducingbarriers to trade for the enrichment of all societies. The greatergood would be served by leveraging comparative advantages forproduction and trade that are impeded by regulatory barriersbetween sovereignty entities. In other words, the betterment of
societies through free trade for everyone is possible as long aseach one has the freedom to produce with a comparativeadvantage and engage in exchanges with others.
This economic rationale for global integration depends on
supporting factors to facilitate the process. The factors includeadvances in transportation, communication, and technology toprovide the necessary conduits for global economic integration.
While these factors are necessary, they are not sufficient.Collaboration with political will through international relations
is required to leverage the potential of the supporting factors.
8/2/2019 Power Point Presentation on Global is at Ion Has Eliminated the Need for Offshore Business
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Reasons for Globalisation
Globalisation helps minimise labour costs
In some labour-intensive industries (eg. clothing, toymaking etc), wages represent the largest input forbusinesses. Many labour intensive areas of production are
located in countries such as Mexico, China, India and SriLanka.
Globalisation increases access to natural resources.
Some countries have limited access to cheap resources.Firms therefore relocate to take advantage of productionabroad.
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Factors which have helped the spread of globalisation
Low transport costs, containerisation
Telecommunications
Internet
Low trade barriers
Political stability Increasing role of TNCs
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Key Players in Globalisation
They include:-
1. Multinational enterprises that carry out business acrossnational boundaries;
2. The World Trade Organisation (WTO), through which
international trade agreements are negotiated andenforced;
3. The World Bank and the International Monetary Fund(IMF) which are meant to assist governments in achievingdevelopment aims through the provision of loans andtechnical assistance; and
4. National governments, who together with theseinternational institutions, are instrumental in determiningthe outcomes of globalisation
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Friends I now move on to the second part of my presentation which is on Offshore business. It will beas follows:
Introduction to offshore business
Definition of offshore business
Offshore Financial Centres
What are offshore companies most commonly used for
Reasons for going offshore Why should one use or own a registration offshore
company
Offshore Business
8/2/2019 Power Point Presentation on Global is at Ion Has Eliminated the Need for Offshore Business
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Definitions of an offshorebusiness/company
Offshore business/ or Company refers to abusiness/company that is formed in a jurisdiction outside
ones own jurisdiction. It is another way of saying offshorecorporation.
An Offshore Corporation refers to a company that is
formed in what is considered to be an offshore jurisdictionrelative to the jurisdiction you are located in. An offshorecorporation does not necessarily need to be located in a taxhaven country. This means an offshore corporation couldbe formed in a country with a high corporate tax basis orthe term could just as easily apply to a corporation formedin a country with a zero or very low tax basis like Panama
which only taxes corporations $300 per year if all theirincome is offshore derived
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Offshore Financial Centres
Offshore financial centres sometimes have a bad namein the international financial community. There are,however, reasons for their existence, and not all of these reasons are dishonourable.
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What are offshore companies most commonly used for?
Offshore companies are most commonly used foroffshore banking to conduct international trade,investment activities, by professionals and for assetprotection. Offshore companies can be involved inbuying and selling goods and services, hold bankaccounts and operate businesses. Offshore companiesare also commonly used for the ownership of realproperty and land; for ownership of intellectualproperty, licensing and franchising; personal serviceby individuals working overseas and offshore e-business.
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Reasons for Going Offshore
Protect your assets from claims, lawsuits, orexcessive taxation.
Optimize taxation on your business proceeds.
Increase your financial privacy and confidentiality
with offshore banking.
Expand your business freedom worldwide andenjoy less bureaucratic laws of another
jurisdictions.
Secure yourself for times of personal orgovernmental strife with second passport and
citizenship.
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Service delivery disruption inoffshore
Increasing onshore presence would provide customersand service providers with the option of proximity andpsychological reassurance while outsourcing. In theprocess, it is bound to create distribution of work
between onshore and offshore.
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The dynamics of cost efficiency in offshore
The first and foremost key driver to choose offshore iscost efficiency. Cost efficiency in the offshoreoutsourcing business is a result of continuousoptimization through scalability of operations. The
lesser the onshore presence, the more profitable theorganization, and hence better the ability to provide“value for money” services.
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Offshoring
Offshoring is a result of business globalization. It occurs when business functions are performed in anothercountry to reduce costs, tap new markets and accesstalents unavailable in a company's home country.
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Conclusion
I see that though both Globalisation andOffshore Business are completely different
things, it is Globalisation that is changingeconomic theory and business practices whichincludes offshore business as well. Now wetalk about oneshore, we talk about the world
as a global village due to certain factors liketechnology, economic interdependence etc ..
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To finish I will quote from John Donne (1572-1631) which appears in Devotions Upon EmergentOccasions, Meditation XVII:
“No man is an island, entire of itself … every man is a
piece of the continent, a part of the main … ”