Analysis The 2000s saw a trade boom for Kazakhstan, primarily fuelled by rising commodity prices and aggressive borrowing. This boom came to a halt in 2007, one year before the financial crisis hit the market. Consecutively, 2009 saw a 25% contraction of imports (nominal terms). Imports from within the future EAU were most affected (more than 34% decrease), in comparison with the EU which saw a 9% contraction. Imports grew 9% in 2010; most of this growth was from within the EAU. This can be credited to the trade diversion and the contraction of 2009. EU imports continued shrinking. Imports from CIS countries interestingly decreased, partly because many of the CIS exports overlap with Russian and Belarus products. (Plekhanov, Alexander) Corruption: Extortion and Evasion: Extortion is a type of corruption where an official obtains money, property or services through coercion. While the service provided for a bribe is usually a “favour”, in extortion the “service” is euphemistically called “protection”, where the extorter does not harm the second party after receiving the bribe. In a real-life hypothetical situation the extortion from import tariffs is as follows: 1. The exporter decides the quantity and value of the goods he wishes to import to another countries 2. Upon reaching the country, the imported merchandise must clear through customs 3. Customs officials engage in extortion and require a bribe to permit the clearance of the goods. (Dutt, Pushan) Evasion, on the other hand, (usually associated with evading taxes i.e. “tax evasion”) includes dishonest tax reporting and the bribe provides the service of downgrading one’s property or income so that the direct tax paid on it proportionately decreases. The evasion effect is... ... middle of paper ... ...An increase in tax rates on multinational firms operating in the country as well as an increase in corruption will lead to a diminution of FDI. (Wei, Shang-Jin). Furthermore, deeper economic integration may increase exposure to macroeconomic vulnerabilities of other member states. The effects of shocks to world and regional trade, such as the collapse of Lehman Brothers in 2008, would be felt to a stronger degree and would propagate through the union quicker. Lastly, Asian Development Bank estimates that clearance times for trucks entering Kazakhstan from outside the EAU increased by 47% since the introduction of the CET. (Isakova, Asel) Import changes: Imports from Russia and Belarus increased, although relatively little. Imports from China suffered most from the higher tariffs, while the change of CIS, EU and world imports was insignificant. (Plekhanov, Alexander)
Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf
Zheng, P. (2009). A comparison of FDI determinants in China and India. Thunderbird International Business Review, 51(3), 263-279. doi:10.1002/tie.20264
With the development of international business, more and more companies get large profits in multinational cooperation, also led to a serious corruption problem at the same time. One of the most famous is the Siemens scandal. Although there are many laws to stop transnational bribery, many companies have to rely on bribes to win contracts. Some managers consider the social resources are limited and the distribution exist competition. A bribe is the easy way to obtain the resources that the companies original may not get. Furthermore, some of the company 's products have serious quality problem, the leaders of production will bribe prosecutors. Then the products into the market smoothly, however, this behavior will lead to unfair competition
Dieppe, A., Dees, S., Jacquinot, P., Karlsson, T., Osbat, C., "Ozyurt, S., Vetlov, I., Jochem, A., Bragoudakis, Z., Sideris, D. and Others. 2012. Competitiveness and external imbalances within the euro area.
Academic Consortium on International Trade (2000) Letter to Presidents of Universities and Colleges. Available at: http://www.spp.umich.edu/rsie/acit/ [Accessed 1 April 2014]
Bribery occurs when money, services, goods, information, or anything else of value is offered with intent to influence a person’s actions, decisions, or opinions of the accuser. Charges can be brought against an individual, whether they offered the bribe or accept it. Bribery and public corruption cases frequently make headlines new stories daily. Bribes can take the forms of gifts or payments of money in exchange for favorable treatment like awards of government contracts (Mince-Didler, n.d.). Government officials tend to gain a huge incentive with bribery while serving their term. Other forms of bribes may include privileges, services, various goods, property and favors. Bribes are always intended to influence or alter the actions of individuals with political and public corruption (Mince-Didler, n.d.).
Russia, spanning 11 time zones and serving as home to about 150 million people, possesses tremendous natural and human resources. Demand today for imported consumer goods, capital equipment, and services remains remarkably strong, with imports representing an unusually large percentage of the national market. Despite outstanding long-term market potential, Russia continues to be an extremely difficult country in which to do business.
Profile of Exports, Imports and Trade Partners. Creative Commons Attribution-ShareAlike 3.0 Unported License, n.d. Web. 13 May 2014.
This topic was chosen because import tariffs are often controversial as they can increase growth as domestic industries are protected from outside competition on the one hand while they pose a threat to global free trade by distorting prices to the disadvantage of the consumer. One example is the European Union (EU) which has created...
Embezzlement is a dishonest way of taking away assets, especially money from a business, or other place. Embezzlement can be compare to theft; an example is a financial fraud. Extortion is the use of power to intimidate to obtain financial benefit, sometimes extortion might involve force or treats. Bribery is refer to giving or offering financial benefit to alter a person’s behavior usually in a position of trust. Bribery is the giving or receiving value items in order to participate in an unethical
One of the most cited arguments for intervention is that of protecting jobs and industries from unfair foreign competition (Hill). While industries like aerospace are protected given their importance for national security, job protection appears as a result of unions and industries putting political pressure given the threat of more efficient foreign firms (Hill). Many countries achieve this by increasing the tariffs on imports of foreign products. What really happens when a certain industry is ...
One of the first contemporary definitions of dumping is “price determination and unfair competition between national markets” (Futrell, 2001, p.254). This definition is found in the provisions of the anti-dumping law in the Emergency Tariff Act of 1921 in the United States (United States Tariff Commission, 2014). The legislative aim of the law was to prevent the sale of foreign goods in the markets of the US at prices that were lower than the prices of the same goods within the US market (Futrell, 2001). Current WTO law on dumping and anti-dumping measures is stipulated in Article VI of the General Agreement on Tariffs and Trade (GATT) and in the WTO Agreement on Implement...
From the above discussion, several differences can be depicted between criminals engaged in money laundering and tax evasion. In this context, criminals involved in money laundering are influenced to conduct the crime in order to hide the destination or the source of their income. On the other hand, a criminal involved in tax evasion mainly tends to hide real financial status in the form of paying less tax to the concerned authorities. One more dissimilarity between the two can be apparently observed as the legal actions that are imposed over these criminals. Criminals of money laundering are expected to get stern penalty as compared to that of tax evasion. Additionally, moral values, according to Value-Belief-Norm theory also differ in nature between the criminals engaged in money laundering and tax evasion.
...rivate sector. The overall negative outcome could be observed on the post USSR countries, named as “transition countries”. Only Poland and Hungary had success along with Georgia, but the latter showed the worst case of output due to the civil wars in 1990s.
China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the area of trade, three major strengths of China are 1) it is the single most important challenge for the European Union (EU) trade policy, 2) China is the second trade partner behind the U.S., and 3) it is the EU’s biggest source of imports by far with the dramatic increase in the EU-China trades over the recent years. The EU exports of goods to China were 113.1 billion Euros and in imports was 281.9 billion Euros in 2010. The service exports were 18 billion Euros and in imports were 13 billion Euros in 2009. China has also established trades with Australia. Recently, the two countries have been cooperating and assisting each other in industries such as agriculture, energy and minerals as they continue their free trade agreements (Jia Qinglin).