Midterm Exam Essay Example | Topics and Well Written Essays - 1000 words

Midterm Exam - Essay Example The memories which these items bring to the author are the core aspects of discussion, resulting into the materials contained within this chapter. There is a significant element of harmony between Chinese and American culture portrayed in the chapter. In consideration of modern times, the chapter might be perceived as containing unacceptable elements of the society, like racism. The elements should however be understood for the viewpoint of a Chinese native residing in America. The cultural difference existing between the author’s native and adopted culture, is attributed to these perceptions. It becomes extremely difficult for the author to perceive some of the common elements within the environment as the Native American would do. This chapter presents the reader with an element for understanding the existing discrepancies between the author’s native culture and the adopted one. There is an element of attachment to the culture which is contained within the context of the chapter, and which the author is communicating to her audience. Understanding the value of culture to the author requires reading through and getting the feeling which are associated with the occurrences described within this chapter. While there might be elements in the reading which could be considered as stereotypes, it remains essential to understand that these are the perceptions of the author. The thoughts presented by these ideologies remains essential in comprehension of the inferred meanings of the writings. While many of the elements contain a simple description of the appearance of objects which the author observes, these objects cause the author to visualise of some Chinese aspects of livelihoods which she has learnt to do without (Wong, 86). This is a significant element within the chapter as it can identify the differences which the author experiences in Chinatown compared to china. While there might be many Chinese

Explain what the term 'fair trade' means and what are the importnent Essay

Explain what the term 'fair trade' means and what are the importnent issues for the business world - Essay Example The Fair Trade Federation states that members are committed to seven key concepts: to pay fair wages; to support participatory workplaces; to ensure environmental sustainability; to supply financial and technical support; to respect cultural identity; to offer public accountability; and to educate consumers. Fair trade consists of 10 standards a business must adhere to. These include: working to create opportunities for disadvantaged producers; transparent management and accountability; helping producers to develop independence; raising awareness and promoting the opportunities of fair trade; paying a fair price; offering gender equality; providing safe and healthy work environments; respecting the UN Convention on the Rights of the Child; working toward environmentally healthy approaches; and fair trade relations—taking into consideration the social, economic and environmental well-being of producers and not taking advantage of the producers by profiting at their expense. 2 To be included as a fair trade business, one must first determine what is considered â€Å"fair†. Fair Trade Resource Network (FTRN) says that being fair constitutes more than just paying a fair wage. â€Å"It means that trading partnerships are based on reciprocal benefits and mutual respect; that prices paid to producers reflect the work they do; that workers have the right to organize; that national health, safety, and wage laws are enforced; and that products are environmentally sustainable and conserve natural resources.†3 The products included in fair trade business are numerous. These include: apparel, accessories, art, crafts, agricultural products, furniture, cards, holiday items, house wares, jewelry, music and musical instruments, paper, pottery, rugs, textiles, toys and others. For consumers, it’s not always easy to determine if a product comes from a fair-trade business.

Iraq and India: Energy Trade Relations

Iraq and India: Energy Trade Relations Statement of the Problem The economic openness is the reality of today’s developed world. The asymmetrical distribution of resources and factor of production has required the economist and social scientists for mutual interaction and trade cooperation for the development of the global economy. The trade and economic cooperation between the two countries is more important these days because of the essential for formulating a feasible and beneficial strategy for the development of the both countries. The bilateral trade and Economic Cooperation between Republic of Iraq and Republic of India are unique. The trade and other related relationships between India and Iraq have its own significance for the economic development of both these countries. Both countries have been traditionally collaborative and had strategic and friendly relations. India has supported a free, democratic, pluralistic, federal and united Iraq  [1]. India-Iraqi ties flourished only after India had started cultivating. Iraq, in bila teral terms on the basis of mutuality of interests in the political sphere and complementarities interests in economic sphere subsequently. It is significant to note that Iraq was one of the few countries in West Asia with which India had established relations very early at the embassy level  [2]. However, India’s economic cooperation with Iraq was stronger than other west Asian countries due to its geographical location and natural resources. The looming threat of wars in Iraq had continuous uncertainty and a negative impact on India’s as well as global trade markets. India’s trade with Iraq tremendously weakened during war periods  [3]. But India’s focus on a strengthened and multi-faceted relationship with new Iraqis an outcome of the significant changes in the political and economic relations between two countries. India’s has been cooperating continuously with Iraq on the road to recovery in the post Saddam Iraq. Indo Iraq economic coopera tion was slow Initial Stage of Post Saddam Government. With the democratically elected government of Iraq in year 2005, it received a strongly re-boost to restart trade and cooperation with India. India actively supports the ongoing reconstruction efforts in Iraq  [4]. Both countries Explore cooperation in e-Governance during Deputy Foreign Minister of Iraq, Mr Labeed Majeed Abbawi, visited India on 17-22 May, 2011. Indian business applied for contracts for restart trade and cooperation. Since there is revival in potential for Indo-Iraqi trade and commerce, a number of steps have been taken at the policy level that can positively impact Indian companies looking to do business with Iraq. At a broad strategic level, a Memorandum of Understanding (MoU) has been signed in 2013 between Iraq’s Ministry of Foreign Affairs and India’s Ministry of External Affairs to update and discuss bilateral and international relations of interest. The two countries are looking to enhance the energy trading relationship, which forms a significant part of overall trade between India and Iraq. The government of India has proposed that it should be ‘strategic partnership’, which could include aspects like oil exploration, petrochemical complexes and fertiliser plants. To this extent, Iraq and India have signed MoU on Cooperation in the field of Energy to make further progress in the relationship in the sector. India aims to change the nature of the relationship with Iraq on energy from a buyer-seller one into one with equity partnership. Iraq and India have also signed MoU on Water Resource Development and Management that looks to cooperate and share expertise in the field on national and international levels  [5]. Such as Indian business applied for contracts for reconstruction projects to coalition provisional authority and more recently the activities of Iraqi business in India have been growing rapidly  [6]. H owever Project exports are perhaps the most significant factors in India’s economic relations with Iraq as well as other gulf countries. They are significant not only for their trade generating effect but also for a different kind of interaction they render possible in India’s external relations  [7]. Today in the globalised world the economies of Iraq have assumed a new economic as well as strategic importance for India. The economic reforms in India resulted becoming one of the fastest growing economies of the world. The growth of India’s economy has stimulated growth in the industrial sector. The higher growth in India’s industrial sector has further resulted in significant rise in energy demand. As India is not self sufficient in its energy requirement, major portion of her energy demand is fulfilled by Iraq petroleum imports. Thus in a situation of growing industrial output and demand for energy, India’s dependence on Iraq would significantly increase. Presently Iraq has become second largest supplier of oil to India only after Saudi Arabia. Thus the trade relations between India and Iraq are very crucial for the growth of Indian economy. It was reported that in India crude oil imports account for more than 96 Percent of her total imports from Iraq. This makes India to face severe deficits in her trade balance with Iraq. But the emergence of rich market of Iraq offered opportunities to India for balanced bilateral trade in 2012. Iraq requires India’s exports in terms of more goods, items, instruments and equipments and more investment in infrastructure, agriculture, machinery, power, healthcare and telecommunication. India’s former Commerce and Industry minister Anand Sharma promised him to encourage Indian businessmen to explore business opportunities in Iraq  [8]. India is appearing to correct this deficit with new investment opportunities, specifically in the energy sector, in one of the fastest growing economies in the region. India is also looking to counter the growing presence of China in Iraq. Beijing has already invested heavily in various projects around Iraq, and has even built its own airport near the Iran-Iraq border from where it ferries its workers to various oil fields in the southern part of the coun try  [9]. In the immediate future, India is looking at increasing its import of Iraqi crude and a senior minister in the Iraqi government has offered to up his country’s oil exports to India by as much as 30 per cent. That Indian oil companies shifted from Iranian to Iraqi oil in 2011-12. In recent year, bilateral trade between both the countries accelerated through Indian government maintained the huge demand of Iraqi crude oil. On the other hand Tubes pipe of iron steel products; Meat of bovine animals, frozen products and Indian basmati rice has found good markets in Iraq, overtake US long gained rice market since 2010. The market for exporting basmati rice would increase due to Iraq’s preference for the products and on the other hand Indian market provides a cheaper imports option. An important step to foster stronger economic bilateral ties between countries took place in an interactive session on certification of goods and exports potential of Iraq, organised by federation of Indian export organizations (FIEO) in April 2012 in New Delhi. Hussein Ali Rajab, the commercial councillor, embassy of Iraq, felt that India exports to this market should increase from $ 750 million to about $ 3 billion by 2015. It is directed that all Indian goods imported to Iraq must be certified by their designated inspection agency so that the buyer can release their goods in Iraq. The previous year, Indian tea exports suffered a setback as more than 200 containers of Indian tea that were being exported to Iraq were barred and returned due to quality issues. Indian steel firm Jindal saw won a 25 year contract to build and run a factory for manufacture oil and gas pipelines in south Iraq. This $ 198 million deal was part of Iraqi efforts to revive its long deserted industrial sector. As part of Indian effort in infrastructure development in Iraq, reliance Globalcom, in projects collaboration with Iraqi telecommunications and post company (ITPC), launched the a l-Faw cable landing station (CLS) for providing telecom service in the country. It is set to enhance internet speed for Iraqi domestic consumer. But presently, demand of India’s Indian productto Iraq and mutual business ties temporarily declined due to Iraqi political climate insurgency  [10]. India’s expatriate in Iraq, once substantial has dwindled to almost nothing. In response to high levels of violence, the Indian government in 2004 banned labour brokers from hiring people for Iraq. This ban was for six months and then was extended from time to time. The extended period of the ban was valid up to April 30, 2010 based on the recommendation of the ministry’s Gulf division. it had been decided not to extend the ban beyond April 30,2010. On 4 May 2010 Indian government lifted the ban on grant of emigration clearance for Indians wishing to travel to Iraq but cautioned that people should take care of their security while working or visiting the oil-rich country. After that Indians can now legally travel to Iraq for work  [11]. Lots of Indians (both legal and illegal migrants) came to Iraq via United Arab Emirates (UAE) and other gulf countries in the past 5 years  [12].More than 80,000 Indians are living in Iraq despite an earlier government advisory again st travel to the country that has been in turmoil since Saddam Hussein was ousted  [13]. The lifting of the ban was termed a step towards normalization of relations between India and Iraq  [14]. Indian Migration to Iraq got disturbed in June 2014 due to political as well as economic crisis in Iraq  [15]. [1] Annual Report 2011-12,Ministry of Overseas, GOI [2] Ajay N Jha, Indo-Iraq Relations: 1947-86: Need For Fress Iniciatives, in West Asia and Indias   Foreign Policy, ed. Verinder Grover( New DElhi: Deep Deep Publications, 1992), pp 437-461. [3] Ibid [4] Opcit 1 [5] Opportunities for India in Iraq’s restructuring, Spacesence News. Feb 06, 2014.  http://www.spacesense.in/news/13 (accessed June 2014, 27). [6] Azhar Muhammad, Indo-Iraq Economic Cooperation in Post Saddam Period, Journal of WestAsian Studies (Deptt. of West Asian Studies, AMU, Aligarh) Vol.23 (2009): pp 148-161. [7] Girijesh C Pant, India-Gulf Economic Relations: A Profiles, in West Asia and Indias Foreign   Policy, edited by Verinder Grover (New Delhi: Deep and Deep Publications, 1992) p 65. [8] Iraq Calls for Balanced Bilateral Trade With India, Outlook, FEB 29, 2012. http://www.outlookindia.com/news/article/Iraq-Calls-for-Balanced-Bilateral-Trade-With-India/753569  (accessed June 12, 2014) [9] Kabir Taneja, India looks for larger presence in Iraq, June 22, 2013. http://www.sunday-guardian.com/business/india-looks-for-larger-presence-in-iraq (accessed June 21, 2014). [10] Sonia Roy, Iraq In Persian Gulf 2013: Indias Relations With the Region, by P.R. Kumaraswamy, pp 115-17. New Delhi: Sage Publication, 2014. [11] India lifts ban on travel to Iraq, The Siasai Daily, May 4, 2010. http://www.siasat.com/english/news/india-lifts-ban-travel-iraq-0 (accessed May 23, 2014). [12] Working in Iraq not worth the risks, says Indian worker in the country, IBNLive, June 16,  2014. http://m.ibnlive.com/news/world/working-in-iraq-not-worth-the-risks-says-indian-worker-in-the-country/479447-2.html (accessed August 2, 2014). [13] â€Å"India lifts ban on travel,† The Siasat Daily, May 4, 2010http://www.siasat.com/english/news/india-lifts-ban-travel-iraq-0 (accessed May 23, 2014). [14] Himanshi Dhawan, Ban on Indians travelling to Iraq lifted, January 9, 2010. http://timesofindia. indiatimes.com/india/Ban-on-Indians-travelling-to-Iraq-lifted/articlehow/6025044.cms(accessed  June 21, 2014) [15] â€Å"Indian faces the Iraq test,† The Hindu, June 21, 2014. http://www.hindu.com/opinion/editional/India-faces-the-Iraq-test/articles6134195 ece (accessed July 12, 2014). India: A Mixed Economy India: A Mixed Economy The present chapter is devoted to the introductory issues relating to the role of Direct tax laws in the development of International Business. Focus has also been laid on the need to present a hospitable environment for encouraging foreign investment and to protect the revenue base of the nation. The chapter has been classified on the following lines. 1.1 Introduction 1.2 Indian Tax Structure 1.3 Basic Principles Of International Taxation 1.4 International Business: Concepts, Scope And Structure 1.5 Need For International Business 1.6 Review Of Existing Studies 1.7 Statement Of The Problem 1.8 Objective Of The Study 1.9 Scope Of The Study 1.10 Limitations 1.11 Hypothesis 1.12 Research Methodology1.1 INTRODUCTION Rapid economic development happens to be one of the primary objectives of all developing economies and India is not an exception. This is possible mainly through the accumulation and proper use of capital. The developing economies lack adequate basic infrastructural facilities. In order to develop these, the government takes upon itself the responsibility for building up capital formation, through sound taxation policies. India is a mixed economy. Liberalization, privatization and globalization have further strengthened the role of tax policy in economic development. Both the public and the private sectors have to play an important role in ensuring satisfactory growth rate. For this, the government has to work out and provide adequate avenues for raising funds by private enterprises. This envisages the need to provide adequate incentives, rebates and reliefs in the form of tax deductions to stimulate the private sector. Here again a sound tax policy and a robust tax structure is inevitable. In order to accomplish the above objectives, the government enacted the Income Tax Act, 1961 repealing the act of 1922. The present Act has realized due weight age of taxation of International Business which has assumed much importance to the tax collector as well as to the tax payers. 1.2 INDIAN TAX STRUCTURE The Indian direct tax policy is structured in such a way as to ensure high progressivity both in terms of tax on income as well as on wealth. The act ensures that higher the level of income, higher shall be the tax incidence. By virtue of entry 82 of List I of the seventh schedule of the constitution of India, the Parliament is empowered to levy tax on income other than agricultural income. Therefore with due exercise of this power the Parliament has enacted the Income-Tax Act 1961. It is a comprehensive act embodied with 298 sections, divided in XXIII chapters, fourteen schedules, along with yearly Finance Acts coupled with Income Tax Rules, 1962. 1.3 PRINCIPLES OF INTERNATIONAL TAXATION There are two basic principle in International taxation 1) Residence Based Taxation- The principle of residence-based taxation asserts that individuals are taxable in the country or tax jurisdiction in which they establish their residence or domicile, regardless of the source of income. In the case of companies or firms, the place of incorporation or the place where control or management is exercised is deemed to be the place of residence. The principle of residence-based taxation of income envisages the taxation of global income. Accordingly, India follows residence based taxation in case of Residents. 2) Source Based Taxation- There are individuals/entities whose residence is in one country but their business is actually carried on in another country and their income is earned in the latter country. The principle of residence-based taxation would be inappropriate in such cases. So the country which provides the opportunity and facilities to generate income or profits should be given the right to tax such income. This forms the underlying basis of the principle of source-based taxation of income. India follows source based taxation in case of non-resident. 1.4 INTERNATIONAL BUSINESS; CONCEPT, SCOPE AND STRUCTURE International Business is a term used to collectively describe all commercial transactions (private and government, sales, investments, logistics and transportation) that take place between two or more regions, countries and nation beyond their political boundary. Private companies, usually undertake such transaction for profit while government undertakes them for profit and political reasons. It also refers to all those business activities that involve cross border transactions of goods, services, resources between two or more nations. International Business not only refers to multinational companies having deals with foreign entities and making headways into the foreign market. It also involves small and independent companies or entities engaging in business with international clients through the medium of internet. International Business comprises a large and growing portion of the worlds total business. Almost all large or small companies are affected by global events and competition because most of the companies sell output and/or secure supplies from foreign countries or compete against foreign products and services. A multinational company would always consider its: MISSION i.e. what the company will seek to do and become over the long term. OBJECTIVES i.e. specific performance targets to fulfil its mission. STRATEGY i.e. the means to fulfil its objectives. The following factors have given a boost to the growth of International Business. Rapid increase in and expansion of technology Liberalization of government policies relating cross-border movement of trade and resources Development of the institutions needed to support and facilitate international trade Increased global competition An International Business may take any of the following mode: Import and export (goods and services) Tourism and transportation Licensing and franchising Turnkey operations Management contracts Direct and portfolio investment And much more MERCHANDISE EXPORTS are tangible goods sent out of a country. MERCHANDISE IMPORTS are tangible goods brought in. Imports and exports are countrys key international economic transaction. SERVICES are earning other than those derived from goods. Earning received are service exports and earnings paid are service imports. INTERNATIONAL TOURISM and TRANSPORTATION are important sources of revenue for airlines, shipping companies, travel agencies, and hotel. Greece and Norway is earning a significant amount of revenue from transportation. Bahamian country is dependent more on earning from foreign tourism than earning from the export of merchandise. U.S. has in recent years earned more from foreign tourism than from its exports of agricultural goods. TURNKEY OPERATIONS means construction or any other operation, performed under contract of facilities that are transferred to the owner as and when they are ready to begin operating. Licensing means use of assets such as trade-marks, patents, copyrights or expertise under contracts. This generates earnings called royalties. FRANCHISING is a way of doing business in which one party (the franchisor) allows another party (the franchisee) the use of trademark that is an essential asset for the franchisees business. The franchisee is also assisted on a continuing basis in the operation of business by providing components, management services and technology. Foreign investment involves ownership of foreign property in exchange for financial return. A FOREIGN DIRECT INVESTMENT is one that gives the investor a controlling interest in a foreign company. A PORTFOLIO INVESTMENT is an investment that gives the investor a non-controlling interest in a company or ownership of a loan to another party. CONTRACT MANUFACTURING it refers to a type of International Business where a firm enters into a contract with a few local manufacturers in foreign countries to get certain components or goods produced as per its specification. It is also known as OUTSOURCING. It can take three major forms; Production of certain components such as automobile component to be used later for producing final products. Assembly of components into final product such as assembly of hard disc, mother board, floppy disc drive etc. Complete manufacture of the product such as garments. The major international companies such as NIKE, REEBOK, LEVIS, get their products or components produced in the developing countries under contract manufacturing. 1.5 NEED FOR INTERNATIONAL BUSINESS International Business helps both the countries to earn foreign exchange which can be used for meeting imports of capital goods, technology, petroleum products and fertilizers and consumer product and services at affordable price. International Business operates on a simple principle -produce what a country can produce more efficiently, and trade the surplus production so generated with other countries. If such an exchange pool of goods and services is distributed equitably amongst nations, it benefits all the trading nations. Producing solely for the purposes of domestic consumption restricts a countrys prospects for growth and employment. International Business helps developing countries to execute their plan to produce on a larger scale and thus create employment for people as well. International trade of goods and services has made it possible for the world community to consume goods and services produced in other countries. A number of corporate entities have improved prospects of their growth by plunging into overseas markets International Business can be more profitable than the domestic business. When the domestic prices are lower, business firms can earn more profits by selling their products in countries where prices are higher. Many firms set up production capacities for their products which are in excess of demand in the domestic market. By planning overseas expansion and procuring orders from foreign entities, they use their surplus production capacities and improve the profitability of their operation. Production on a larger scale leads to economies of scale, which in turn lowers production cost. 1.6 REVIEW OF EXISTING STUDIES No study seems to have been made in India to cover the various aspects of Taxation of International Business. This section presents a brief review of some of the important studies conducted on the subject of taxation. These studies would provide background material for the proposed work. Goenka (1983)1 emphasized the need for evolving an optimum direct tax planning process for our business entities, which will enable them to maximize their after-tax profits, so that these are available for establishing new industries and expanding the existing ones. Tax planning has emerged as an important tool for management decisions beginning with the settling up of an enterprise to the level of strategic, project and operational planning constituted at different stages of development of an enterprise and at different levels of policy formulation and operation. Tax planning would in no way lead to tax loss to the national exchequer; as the corporate sector progresses at a faster pace, Government can not only recoup the tax loss but improve upon the same. Agarwal (1987)2 has emphasized on tax incentives as an instrument of Fiscal policy to achieve the stated objectives of mobilizing saving and inducing investment. In the opinion of author, tax incentives offer a relatively straight forward means of promoting industrialization compared to other long term or complex measures that are more difficult to implement. However, tax incentive may not be used and may not yield the desired results. So tax incentives may be complemented with some of the other alternative measures to achieve the desired results. The study also revealed that the type, size and magnitude of tax incentives offered in different countries vary widely depending upon the needs and aspirations of their people. So incentive programme in India has undergone a number of changes from time to time and has a wide coverage. India is offering largest number of tax incentives as a part of its tax incentives package. Agarwal (1991)3 observed that significance of personal income tax can be judged in terms of its share in total tax revenue or national income. The contribution of direct taxes in general and of personal income tax in particular to the total tax receipts of Union Government of India has declined over time. India has depended more on indirect taxes for additional resource mobilization. Frequent upward revision of the exemption limit under the personal income tax tends to restrict growth of the tax base. The study covers the single major category of personal income tax payers individual. These account for more than 90% of the total number of personal income tax payers and their taxable income. The observed elasticity, progressivity and re-distribution impact of a tax is the net effect of interaction between tax parameters (such as tax schedule) and non tax parameters (such as income inequality). The study has concentrated on observed empirical functions and not on behaviouristic relations. So the discussion of tax evasion and tax compliance is beyond the scope of the study. Jain (1991)4, revealed that the private corporate sector has been looked upon as an important source of saving in India. The Government has succeeded in influencing the corporate decision processes at different levels and encourages them to save more. In Indian tax structure, there is a heavy tax on companys profits which reduces savings since it is assumed to be borne by the companies themselves; so the question of mechanics of corporate saving behaviour was probed into and she identified the possible channels through which taxes could influence corporate saving decisions. She insisted on revamping the tax structure. A reduction in tax rate would have a favourable impact on retention, resulting in utilization of more internal finance and ploughing back of profits. Tax reductions have to be combined with a corresponding review and reduction of tax incentives and fiscal incentives provided to the corporate sector. KADEL (2000)5 stated that Nepal, a small under developed country of the world economy, started using tax incentives to encourage private investments. The result was the introduction of tax holiday system and providing many other tax related facilities by Industrial Enterprise Act in 1962 and motive was to attract private investment. Since then, series of changes in tax rules were noticed. One of the objectives of all these changes was to create investor friendly environment and in turn increase investment. The author revealed that inflation is the main source of distortion for the corporate tax system in Nepal. Inflation rate and effective tax burden in Nepal are negatively related. The main determinant of fixed asset investment in Nepal is the availability of market or customer. The tax factor too as a determinant of fixed asset investment is playing only a small role in this regard. Across the four techniques of providing tax incentives i.e., tax holiday, accelerated depreciation, investment allowance and tax rate reduction, investment allowance is the best method to reduce the effective tax burden. Full tax holiday system is not preferable for both the reduction of tax burden and getting equity in the tax system. The proposed study will attempt to bridge the gap by focusing on international business. 1.7 STATEMENT OF THE PROBLEM India, the worlds largest democracy, has emerged as a strong player on the international arena. Indias role in international affairs is increasing at a higher pace. The thrust for major changes initiated by the Indian Government is to sweep away much burdensome regulation and create a business friendly environment for domestic and international business. Development took place through many reforms e.g. macro-economics reforms, tax reforms, finance reforms and freeing of capital markets, reforms in the regulation of business firms, revitalization of the Indian private sector, removal of exchange control and convertibility, trade reforms and foreign direct investment, reduction in licensing and quota raj as well as inspectors domain. Tax reforms, initiated in 1991, have sought to rationalize the Indian tax structure and increase tax compliance with the following steps: Reducing the rates of individual and corporate income taxes, excises, and customs and making it more progressive. Simplication of laws and procedures and introduction of Advance Ruling Introducing tax incentives in the form of exemptions and concessions. Easing out the rules relating to filing of returns (E-filing), TDS Laws relating to IB have also been simplified. Despite the above steps initiated by the government, the problem of ambiguity is continuing viz. (1) Business entities are not sure of their future tax liability in terms of rate of tax (to be applied in years to come, changing by virtue of Finance Act) (2) Retrospective amendment in the law has its own impact on foreign business entities.(Vodafone International Holding BV v Union of India) Vodafone was embroiled in a $2.5 billion tax dispute with the Indian Income Tax Department over its purchase of Hutchison Essar Telecom services in April 2007. It was being alleged by the Indian Tax authorities that the transaction involved purchase of assets of an Indian Company, and therefore the transaction or part thereof was liable to be taxed in India. Vodafone Group Plc. entered India in 2007 through a subsidiary based in the Netherlands, which acquired Hutchison Telecommunications International Ltds (HTIL) stake in Hutchison Essar Ltd (HEL)-the joint venture that held and operated telecom licences in India. This Cayman Islands transaction, along with several related agreements, gave Vodafone control over 67% of HEL and extinguished Hong Kong-based Hutchisons rights of control in India, a deal that cost the worlds largest telco $11.2 billion at the time. The crux of the dispute had been whether or not the Indian Income Tax Department has jurisdiction over the transaction. Vodafone had maintained from the outset that it is not liable to pay tax in India; and even if tax were somehow payable, then it should be Hutchison to bear the tax liability. In January 2012, the Indian Supreme Court passed the judgement in favor of Vodafone, saying that the Indian Income tax department had no jurisdiction to levy tax on overseas transaction between companies incorporated outside India. However, Indian government thinks otherwise. It believes that if an Indian company, Hutchison India Ltd., conducts a financial transaction, government should get its tax out of it. Therefore, in 2012, India changed its Income Tax Act retrospectively and made sure that any company, in similar circumstances, is not able to avoid tax by operating out of tax-havens like Cayman Islands or Lichtenstein. In May 2012, Indian authorities confirmed that they were going to charge Vodafone about Rs. 20000 crore (US $4.5 billion) in tax and fines. The second phase of the dispute is about to start. 3.) Lots of disputes and litigation are pending before the various court of law of the country which are deciding factors for tax liability of business entities.( Idea Cellular-ATT, GE-Genpact, Mitsui-Vedanta, Sabmiller-Fosters and the Sanofi Aventis-Shantha Biotech have tax cases pending in various high courts in the country) 4.) Uncertainty regarding the impact of direct tax laws and allied costs arising after the completion of total project particularly where in the international transactions, the gestation period of a project is too long ranging from 3 years or more. 5.) The effect of change of government policy due to tax avoidance treaty with other countries resulting in the total darkness regarding tax incidence on their profit after the completion of project. (India is negotiating the tax treaty with Mauritius to prevent evasion of tax. India wants to retain the right to tax capital gain arising to non-resident. India has already started raising tax demands against the companies and many of these cases are being disputed in various courts.) BRIEFLY, DOUBLE TAXATION, UNRESOLVED TAX DISPUTES, UNCERTAINTY IN THE APPLICATION OF INTERNATIONAL TAX RULES, HEAVY COMPLIANCE BURDENS, ALL CAN ACT AS A BARRIER TO THE EXPANSION OF CROSS-BORDER TRADE AND INVESTMENT, THEREBY HAMPERING INDIAS GROWTH RATE. 1.8 OBJECTIVES OF THE STUDY With a view to extract the gains of globalization and to develop international business in mutual interest, the present study is being undertaken with the following objectives: 1) to examine the role of direct tax laws in the development of International Business. 2) To appraise the Tax Professionals, Tax Executives and Entrepreneurs with the provisions of tax laws, connected with International Business/International Transactions and enabling them to take advantage of all tax benefits concessions (set-off carry forward),rebates (section 89) and reliefs(section 90 91), allowances(section 35), deductions ( section 80) and exemptions (section 10), available in our tax laws with due compliance of the requisites. 3) To suggest and propose measures to our policy makers that by making lawful amendments in the act, how our International Business can be strengthened. Broadly speaking, the study would address the following issues: What are the measures through which our tax professionals can manage their global tax risk and meet cross border obligation? How our business entities can complete their international transactions peacefully without facing any undue litigation or political harassment and thus maintaining effective relationship with tax authorities. What are the loopholes in the act which may be twisted by an assessee for their own benefit. It is required to be plugged or explained properly by the government by making amendments in the Act. The study also intends to make a comparative study of the tax rates of India with a few selected countries to encourage Indian enterprise to deal with countries having comparatively lower rate of tax . 1.10 LIMITATIONS Direct tax laws is a wide term which embraces in itself a variety of tax laws but the present study is restricted to Income Tax Act 1961. Income tax act 1961 is subject to change every year. This study is based purely on aspects of Income Tax Act 1961, for the assessment year 2012-13. 3) The nature of topic in itself is a big limitation. Till date, lacs and lacs of transactions have taken place in International Business and thousands of cases are pending in various Tribunals, High Courts and Supreme Court, waiting for the judgment. Whenever the final judgment will be pronounced, it will become a law and guiding factor for future policy makers and help for tax planning. 4) Other indirect tax laws like Customs Act, FEMA etc. are equally important in international business but we are restricting our study to the Income Tax Act only and leaving the scope for other research scholars willing in the same framework of study. 5) Further, the study has been conducted mainly from the point of view of the tax payer and not from that of the tax assessor or tax collectors, though it may be indirectly helpful to them in formulating appropriate policies and provides a basis for granting fiscal incentives based on national priorities. 1.11 HYPOTHESIS 1) The policy makers do not foresee at the time of framing the law that new techniques of tax evasion and avoidance may arise. The business houses with their expert legal brains, who are engaged mainly to seek loopholes in the law, take the maximum tax advantage due to the Government policy. They keep themselves within the framework of law but do not fulfil the intentions of the law, thereby tax avoidance arises. 2) The tax executives and business houses usually do not calculate the in depth risk of such transactions which arises due to higher gestation period of project. 3) Assessee do not forsee any change in the act with retrospective effect. 4) The assessee prefers a low rate of tax. 1.12 RESEARCH METHODOLOGY The proposed study is descriptive and analytical in nature where in researcher uses facts or information already available and analyse these to make a critical evaluation of the material. Here researcher has no control over the variables. The researcher can only report what has happened or what is happening along with possible suggestions. So the study would be based on the various books, journals, Finance Acts, Explanatory Memorandum on the Budget of the Central Government, Reports of the various committees/commissions, Indian Economic Survey, Income Tax Act 1961, Income Tax Rules 1962, various announcements, circulars and notifications of Central Board of Direct Taxes, Budget speeches of Finance Ministers, Reports of Comptroller and Auditor General of India on Direct Taxes, Economic and Political Weekly, newspapers (Economic Times, Financial Express, Business Lines) etc. Moreover, websites of Income Tax Department, Ministry of Finance, Ministry of Statistics and Comptroller and Auditor General of India have also been used for collection and analysis of data. The methodology may further be modified with the want of the circumstances. CONCLUSION This chapter laid the foundation for the research. It introduced the research problem and research question and hypothesis. Focus is also laid on the review of existing studies, limitation of the study and methodology adopted. Future outline In the upcoming chapters, an attempt has been made to discuss various Direct tax instruments which directly help in the development of International Business. These instruments have been specifically provided by our policy makers in our tax laws, keeping in view the national priority for development, growth and employment. At the same time, the need to augment revenue and resources have been duly kept in consideration, being an equal factor for development of the country. Such instruments as have been discussed in our future chapters have contributed its growth values in the development of International Business. These provisions and their impact with broad outlines and suggestions have been discussed in detail.

A Freudian Analysis of Voltaires Candide Essay -- Candide Voltaire F

A Freudian Analysis of Voltaire's Candide      Ã‚  Ã‚   In Civilization and its Discontents, Sigmund Freud refers to the important role that love plays in the world of Man. Love certainly plays an important role in Voltaire's Candide; throughout Candide's journeys, a constant factor is his love for Lady Cunegonde and his desire to be with her. Freud writes "the way of life which makes love the centre of everything [...] comes naturally to all of us," (Freud, p. 29). Candide's love for Cunegonde is the driving force of his life from the moment they are parted at the beginning of the novel until they are bonded in marriage at the end. Throughout his experiences, Candide continues to think about Cunegonde. Even after narrowly surviving the Bulgar-Abar war, Candide's thoughts are still about Cunegonde (Voltaire, p. 26). "We are never so helplessly unhappy as when we have lost our love object," (Freud, p. 29). Man is never more vulnerable as when the person he has chosen as the object of his love is taken from him. When Candide is at Eldorado, where no-one goes hungry or has any needs which go unfulfilled, he tells his companion Cacambo, "'I shall never be happy without Lady Cunegonde,'" (Voltaire, p. 82). Candide found, it would seem, the one place on Earth where there is no suffering from poverty, war, or injustice. He and Cacambo could have lived long and fulfilling lives in Eldorado, but Candide insists on returning to his beloved Cunegonde. When Candide and Cunegonde are at last reunited, Cunegonde asks Candide "[what] has happened to you since that innocent kiss you gave me?" (Voltaire, p. 40). The kiss, which Cunegonde describes as innocent, cost Candide dearly; her brother the Baron "drove Candide from the house w... ...is largely responsible for our misery and we should be much happier if we gave it up and returned to primitive conditions," (Freud, p. 33). Candide realizes at the end of the novel that the formula for being content is simple: "We must go and work in the garden," (Voltaire, p. 144). When Man does not have to fight the rules of civilization, his life is a much simpler lot. Many of the points which Sigmund Freud makes in Civilization and its Discontents can be paralleled to the experiences of Candide in Voltaire's Candide. These points can also be linked with the society Man lives in today. Candide is clearly a member of Man's society and is subject to all the needs and desires described by Freud. Works Cited Sigmund Freud. Civilization_and_its_Discontents. New York: W. W. Norton and Company; 1961. Voltaire. Candide. London: Penguin Books; 1947.

Ethical Problems of Gambling Essay

Looking at the ethical view of gambling through the eyes of Utilitarianism and Deontology perspectives we will find 2 very different views with the same outcome. Should there be any restriction of gambling? Is it a form of freedom, or an invitation to addiction? George Washington said: â€Å"Gambling is the child of avarice, the brother of iniquity, and the father of mischief.† Benjamin Franklin advised: â€Å"Keep flax from fire, and youth from gaming.† There is all kinds of gambling these days, there is internet gaming, sports wagers, casinos, animal fighting , and many other ways , we can even gamble in the stock market. Utilitarianism suggest that we do what’s right for the most people involved. As I think about that statement the only entity that gambling really helps is the corporation that is presenting the gambling opportunity itself. Money that could be invested, loaned, and recycled through the economy is instead risked in a legalized gambling scheme. Legalized gambling siphons off a lot of money from the economy. More money is wagered on gambling than is spent on elementary and secondary education ($286 billion versus $213 billion in 1990). Historian John Ezel concludes in his book, Fortune’s Merry Wheel, â€Å"If history teaches us anything, a study of over 1300 legal lotteries held in the United States proves†¦they cost more than they brought in if their total impact on society is reckoned.† What is better for the good of society would be to stop gambling all together because only a handful of people may win enough to actually help them in anyway at all. Sports gambling has affected sports by introducing organized crime into the sporting arena. Past  scandals at Boston College or Tulane illustrate how gambling has adversely affected the integrity of athletes, coaches, and colleges. Players have been involved in point-shaving scandals and the problem could only become worse in an environment where sports gambling is legalized. The solution in the Utilitarianism perspective would be to not allow gambling because it hurts more cities and people than it helps. Psychologist Julian Taber warns, â€Å"No one knows the social costs of gambling or how many players will become addicted†¦the states are experimenting with the minds of the people on a massive scale.†(7) Families are torn apart by strife, divorce, and bankruptcy. Boydon Cole and Sidney Margolius in their book, When You Gamble–You Risk More Than Your Money, conclude: â€Å"There is no doubt of the destructive effect of gambling on the family life. The corrosive effects of gambling attack both the white-collar and blue-collar families with equal vigor.† Looking at the Deontology perspective we will try to look at the reasons behind gambling. Although gambling has a clear financial effect, it is fundamentally an emotional issue (KalebKaleigh, May 2011). The behaviors of an addicted gambler can be similar or the same as a drug addict or alcoholic. A 1994 study out of the University of Illinois that indicated the social problems created by gambling, (e.g., gambling addiction, domestic abuse, suicide, crime, indebtedness, etc.) outweigh by far any benefits to the community. In fact, the gambling enterprise costs â€Å"taxpayers $3 for every $1 of state revenue collected.† If gambling hurts more than it helps, the denontology perspective would look at why. Compulsive gamblers find ways to deal with increasing monetary loses without curbing the gambling habit. For instance, going into retirement savings to  try their chance at the â€Å"big win.† On the other hand, if the gambler becomes increasingly irritable, taking over finances, and spending more time away from home without an explanation, suspect something is wrong (Stannard,2010). The mentality that you can get something for nothing is very addictive. When I was a bingo caller we would call a new player a virgin because they did not have the feeling of winning yet but after they won and realized how easy it was and how fun the feeling is when you win, they were instantly addicted. They would be there every night looking for that feeling again, even if they didn’t win for 30 days after. People like getting a lot for a little and the excitement of winning is very addictive. American society has deemed gambling an activity that is victimless and therefore the right to gamble has been upheld. Gambling disorders are broadly defined as persistent and recurrent maladaptive gambling that disrupts personal, family, or vocational pursuits (American Psychiatric Association, 2000). If drugs are illegal because of what they do to individuals and families then why shouldn’t gambling be illegal too? The social and economic cost associated with gambling is enormous. Pathological gamblers may develop general medical conditions associated with stress, and there is elevated risk of suicide (Petry, 2005). Pathological gamblers also are reported to have incresed rates of mood disorders, attention-deficit/hyperactivity disorder, and substance use disorders (Crockford & el-Guebaly, 1998). When looking at this through a Deontologist perspective we have to look at the reasons of gambling addiction. The explanation of loss of control of gambling behavior (so-called pathological gambling) presents a considerable challenge for general theories of addiction for two main reasons. First,  unlike many other addictions, gambling does not involve the ingestion of substances that alter psychopharmacological states. Second, like many other addictive activities, the majority of the population participates to some degree (Walker 1992b). Decision making disorders could play a huge role in a gambling addiction. The addict will have problems deciding when to gamble and how much they should gamble. It has been argued (Evans & Coventry 2006) that the explanation of gambling behavior should be seen in the context of two different types of decision making – implicit and explicit systems. The importance of implicit (unconscious) processes in relation to human decision-making and reasoning has been demonstrated across a wide range of decision-making and reasoning tasks (Evans 2003). Not matter what the reason is for a gambling addiction, gambling can ruin a person and those around them. Gambling causes crime and families being torn apart. No matter which way you look at gambling either through a Deontologist perspective or Utilitarianism perspective, the outcome is the same. When there is gambling introduced to society, there will also be crime and addiction. References A. Bechara, H. Damasio, D. Tranel & A. R. Damasio (1997) Gambling and decisionmaking: A dual process perspective. Science 275:1293-95. Coventry, Kenny R A dual process perspective Coventry, Kenny R. Behavioral and Brain Sciences 31.4 (Aug 2008): 444-445 J. St. B. T. Evans (2003) Gambling and decision-making: A dual process perspective. Trends in Cognitive Sciences 7:454-459. R. W. Wiers & A. W. Stacy, eds (2006b) Gambling and decision-making: A dual process perspective. Current Directions in Psychological Science 15: 292-96. McKenna, David. 1973. Gambling: Parasite on Public Morals. Christianity Today, June 8. Charles T. Clotfelter and Philip J. Cook, Selling Hope: State Lotteries in America (Cambridge: Harvard University Press, 1991), 123-127. International Gaming and Wagering Business, Supplement, The United States Gross Annual Wager 1997, 30 Downs, C, & Woolrych, R (2010). Gambling and debt: The hidden impacts on family and work life. Community, Work & Family, 13(3), 311–328 Lesieur, HR (1998). Costs and treatment of pathological gambling. The Annals of the American Academy, 556, 153–171 Franklin, J, & Thoms, DR In Shaffer H (Ed.) (1989). Clinical observations of family members of compulsive gamblers. Compulsive gambling: Theory, research and practice (pp. 135–146).

Antonio Vivaldi: Introductory Concepts

Introductory Concepts Composed by Antonio Vivaldi,† L’inverno† (Winter) is the fourth concerto of a set of violin concertos named â€Å"Le Quattro Stagioni† (The four seasons) that belong to a more complex work titled â€Å"Il cimento dell’armonia e dell’inventione† (The Contest of Harmony and Invention) (Grasmeier) . The structure of this piece is in ternary form. The piece begins with a fast tempo and then slows down to finish fast and loud again. Vivaldi makes use of variety in this â€Å"Winter† composition through dynamic when the music suddenly changes its volume and also through changes in pace.Although this concert is performed only by string instruments (mainly violins) he also achieves variety by using different techniques among the instruments (like pizzicato). Vivaldi’s â€Å"Winter† is considered a program music which means it must tell a story. I believe he is able to evoke cold, ice, chattering teeth, shivering bodies, and wind. Beginning with a fast pace seems like a big storm is about to come, when the violins go in crescendo it feels almost like some people are running to get shelter, and the pizzicatos reminded me of shivering.I also believe that the high pitch of the violins helps to give the image of coldness. This masterpiece is played by an instrumental ensemble, more specifically, an orchestra and has a violin solo. The instruments involved are string instruments (violin being the predominant). The main melody or Idea A is played very loud and the violin solo is executed with bravura which gives more heart to the music. In all, I believe that this composition serves its purpose of creating mood and is also very delightful to listen to.