Effects of Globalization in China Research Paper

Effects of Globalization in China - Research Paper Example Due to increased practice of globalization values, the interaction between the countries has significantly increased and strong. None of the country could survive and prosper today without following the trend of globalization. The countries with great realization about the importance of adopting globalization are progressing significantly and experiencing positive changes within their economic and social scenarios. Globalization allows the countries to enter the world of free market, liberalized trade and market oriented businesses marked with intensified competition and great interdependence. Changed Brought by Globalization Today each and every country is experiencing the strong impacts of globalization in some way or another. The increased and strong interaction between the countries is making the economies of the involved countries stronger because they exchange technology, goods and capital and flourish their economic developments with the help of FDI and advanced technologies a ttained from the other countries (Fung et al, p102). ... p54). In order to cope with the changes and challenges pose by globalization it has become imperative for the countries all over the world to foster coordination and cooperation so that they could survive in the highly competitive market place of today and keep them aligned with the new rules and regulations of the global economy (Nolan, p52). The countries succeed to proceed with the strategies, planning and policies of integrated economy flourish in the new situation whereas the countries fail to integrate with the word economy lag behind the other countries. The changing scenario created by globalization is full of opportunities as well as challenges for the countries across the globe (Guthrie, p54). The Chinese Experience Located in the Asian continent Chine is the highest populated country of the world. The country is experiencing the fastest pace of economic growth that is mainly backed by globalization. With no exception China has also experienced major changes within its econ omic landscape after the evolution of globalization. Cross border trade was practiced by China several centuries ago when trade took place between Han Chinese and their neighbours through the Silk Route. China opened its door for the European trade since the Portuguese established ports in Macao during th sixteenth century (Scupin, p325). The impacts of globalization upon China could be traced in accordance with different aspects of economic activities like foreign trade, finance, environment, lifestyles and quality of life (Guthrie, p54). Chine has shown great awareness towards the importance of globalization. It has learnt that the long history of isolation gave it nothing but backwardness and after this realization there are

Come up with topic and I will discuss it with the professor then u can Essay

Come up with topic and I will discuss it with the professor then u can start writing - Essay Example Corporate income tax depends on the net taxable income. Where taxable income surpasses $335,000, all taxable income is subject to tax at 34 percent or 35 percent. Tax rate enforced below the federal level fluctuate from 1 percent to over 16 percent. Regulated Investment Companies (RICs) are the domestic corporations which during the taxable year are listed under the Investment Companies Act of 1940, as amended as a unit investment trust or a management company or to be treated as a business development company under such Act. This paper will focus on tax treatment of regulated investment companies and the corporate income tax and how do they differ from one another. Historical Content During the past decade, the corporate income tax has been the centre of attention of much debate and criticism in the United States (U.S.). It may be due to the low level of business investment in US and it has been also condemned as a primarily illogical and unfair tax because corporations are taxed as independent entities, in spite of the tax brackets of individual shareholders. The recent tax acts have lessened the corporate tax burden by substituting the system of several asset depreciation classes with three capital recovery classes. Business structures can be written off over fifteen years, other equipment over five years and light equipment over three years (Auerbach, 451-458). The corporate tax is the 3rd major source of federal revenue after the payroll taxes and the individual income tax. Regulated Investment Companies are listed under the Investment Companies Act of 1940. RICs escape corporate taxes due to the reason that they make profit from investments through shareholders and they do not have any real operations. Thus, they pass profits to shareholders and circumvent double taxation. They meet definite standards and therefore do not have to pay federal income taxes on interest, distribution of dividends and realized capital gains. Economic Incidence of the Policy Sh areholders must be the citizens or residents of United States. The tax is imposed on the profits of the resident corporations of U.S. at graduated rates ranging from 15-35%. Corporate shareholders pay individual income tax on capital gains and on dividends from sale of their shares. The corporate tax rules which are faced by the U.S. based corporations on their profits from United States business activities, of which the foreign multinational companies are the owner, are same as that of U.S. owned companies. An increase in the corporate income tax increases the cost of capital in the corporate sectors due to the burden of tax-wedge. The return to corporate capital falls as capital flows from corporate sector to non corporate sector. For high capital intensive industries, corporate income tax increases the prices of goods and services and for low capital intensive industries, prices falls with the tax. U.S. capital bears the small incidence of the corporate income tax and labour bear s more or less 100% of the incidence of the corporate income tax. The domestic corporations who bear the economic incidence and therefore opt to be taxed as a RIC are as follows: RIC must be a corporation which should be registered under the Investment Companies Act as a unit investment trust or as a management company. It may also be a common trust. Each series fund which is ascertained by a RIC will be treated as a separate corporation and they should separately meet all the qualification