H16 Multinationals in the economy
 4.1 Types of business organization
Toyota to create 800 new
jobs in South Africa
Japanese car manufacturer, Toyota, has
announced it is to invest R363 million (US$51
million) in a parts distribution warehouse in
Ekurhuleni, east of Johannesburg, creating
about 800 jobs.
Foreign companies boost
tax revenues in Xiamen
37 subsidiaries of 17 of the top 500 global
companies in Xiamen in China, including
Dell Inc, Boeing and Toyota, contributed
RMB 674 million in taxes in the first seven
months of 2011, a 88.27% increase from the
previous year.
© Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute
UK benefits from inward
investment
In the year to March 2011 the UK attracted
over 1,430 foreign direct investment (FDI)
projects, many in high technology areas such
as software development, advanced
engineering, IT and life sciences. More than
94,500 jobs were associated with these
investments totalling over £43 billion.
The Tax Haven That’s
Saving Google Billions
Google uses a complicated structure to send
most of its overseas profits to tax havens, keeping
its corporate rate at a super-low 2.4 per cent.
The heart of Google’s international operations
is central Dublin in Ireland. In 2009 the office,
which houses roughly 2,000 Google employees,
was credited with 88 per cent of the company’s
$12.5 billion in sales outside the US. Most of
its gross profits of $7.5 billion, however, were
‘paid’ to its HQ in Bermuda in the form of an
‘administrative fee’ leaving an operating profit
in Ireland of just $60 million.
There is no corporate income tax in Bermuda,
compared to Ireland which taxes company
profits at the rate of 12.5 per cent.
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 Calls from Vietnam animal Reports claim Wal-Mart’s
feed industry for government Chinese Plants Exploit
to protect businesses Workers
Foreign livestock firms now hold over 70% of US retailer, Wal-Mart Stores Inc., uses Chinese
the animal feed market in Vietnam, pushing factories that deny overtime pay and maternity
out local businesses and making it difficult for leave to workers and pay less than the local
them to compete fairly, according to local minimum wage, according to three reports
industry representatives who are calling for the from labour monitoring groups released today.
government to step in.
‘While local firms are suffering losses, and
reducing production, foreign ones are growing US oil giant Chevron fined
in Vietnam, dominating the market and increasing $8bn over ‘widespread
prices unreasonably to earn huge profits,’ said
contamination’ of Amazon
the Vietnam Animal Feed Association.

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© Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute