There are many types of taxes levied throughout the world.
- Income taxes
This is determined according to a person or firm’s taxable income after adjusting the deductibles according to the law.
- Transaction taxes
Taxes applied to transactions. Such as value-added taxes, excise taxes extraction taxes and tariffs.
What is double taxation?
When it comes to overseas operation the mar problems MNCs have to face are obey the rules of different taxing authorities and double taxation. Double taxation is; the income earned by a MNC may be taxed when it is earned in the foreign county and again it is remitted to and realized by the parent corporation. This is a common situation for the individuals too who earn in abroad.
International Staffing
The most common structures used my MNCs to organize and manage the operations are functional, regional, product line and matrix. International staffing relies on four main stages of recruitment, selection, training and motivation. Labor relations and the role of unions can be differing among nations. International union seeks greater cooperation across national boundaries but nationalistic attitudes, different goals and physical distance may reduce the speed of growth. Condetermination is a recent development attempts to boost worker influence and responsibilities in MNC operations.
In international business arena production and technology is a main key to influence a company to decide where and how it operates. Before making production decisions it’s important to consider the additional factors like wage rates, foreign exchange risks, international tax laws etc. Operation management focuses two categories of activities, those are productive and supportive. Any MNC’s competitive advantage is considerably dependent on technology advantages whether they are a product, management or process technology. MNCs continue to make technology improvements and transferring the latest technology among affiliates and subsidiaries in different nations is a best way of gaining a chance to work with high technology for the countries that are not use developed and latest technology.
