Prepare a 400 word paper in which you conduct a country risk analysis for your selected global business venture (please see attached word file). Analyze the following risks in your paper:
o Taxation and double taxation risks
? Market risks (four Ps)
? Distribution and supply chain risks
o Physical and environmental challenges to entering and operating in a target market
? Describe how you would manage these risks
Thank you for posting today. It is my goal to provide ideas, definitions, research help, and instructions on how you, the student, should approach the assignment.
Let's look at this step by step:
o Taxation and double taxation risks. Consider this:
One-tier corporate tax system is implemented in Singapore, meaning that taxes paid by the company on chargeable income will not be applied to shareholders on dividends received from that income. Income tax rate for business activities conducted in Singapore ranges between 9% and 18%, while corporate tax is not levied on business income outside the jurisdiction.
Withholding tax is not levied on dividends. Rental equipment, interests and royalties payments to non-residents are taxed for the purposes of withholding tax at a rate of 15%. There is no capital gains tax in Singapore.
Social security contributions, property tax, road tax as well as value added tax and sales tax are payable."
As you said in your paper, Singapore is a great place to do business. And since there is no tax on business income from outside the country, you don't risk it being taxed by Singapore and some other government as well. So this is a huge bonus. Also, the business tax rates are not terrible high either.
? Market risks ...
The solution goes indepth on each of the points listed in the problem. The attached file was the case study that was drawn upon.