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Home Country Taxation and the Theory of International Production
Author(s) -
Weisfelder Christine J.
Publication year - 1994
Publication title -
journal of international financial management and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.818
H-Index - 37
eISSN - 1467-646X
pISSN - 0954-1314
DOI - 10.1111/j.1467-646x.1994.tb00043.x
Subject(s) - multinational corporation , equity (law) , production (economics) , business , international taxation , cash flow , perspective (graphical) , economics , finance , monetary economics , public economics , tax reform , macroeconomics , artificial intelligence , political science , computer science , law
This paper addresses the taxation of foreign source income from the perspective of a multinational firm. It demonstrates how differences in home country fiscal regimes of multinational firms can lead to variations in the cost of transferring cash resources across the borders of national jurisdictions. In the framework of international production theory, it shows how the home country fiscal regime can be a source of ownership advantage when the firm creates an appropriate network of assets, liabilities and equity. Taxation is the link between some financial decisions to the theory of international production. Observations are taken from the tax calculations of three hypothetical multinational firms.