The Corporate House of Cards

According to Investopedia: "The double Irish with a Dutch sandwich is a tax avoidance technique employed by certain large corporations, involving the use of a combination of Irish and Dutch subsidiary companies to shift profits to low or no-tax jurisdictions. The technique has made it possible for certain corporations to reduce their overall corporate tax rates dramatically." Here is how the Double Irish Dutch Sandwich works: First, we set up two Irish corporations and a Dutch corporation. Then, you send profits through the first Irish company. Those profits are then paid to a Dutch company. Finally, the profits are moved to a second Irish company that has its headquarters in a tax haven such as Bermuda, Nevis or the Cayman Islands, for example This strategy has allowed certain companies to reduce corporate taxes to virtually zero. The word sandwich is used because of the modus operandi of these tax structures.  The setup involves shifting revenue from one Irish subsidiary t...

In the economically weaker year of 2008, when everything was falling apart, a startup set shop as a digital marketplace for lodging or living worthy properties which could be put up for rent by the owner to get some side bread! Airbnb inc. as it is called acts as an agent between the homeowner and the tenant. Airbnb is a platform where homeowners enlist their property and provide necessary details about the place, tenants, on the other hand, can browse through the various enlisted properties and can select the one they desire. Airbnb inc was an instant hit in the market especially among the segment of people traveling to various places for different reasons and who did not want to spend megabucks on eye candy hotels.  They simply just booked a property within their budget and got the homely feeling they deserved. Although, the one major problem that Airbnb probably faced was the mindset that  “what if the house or property I rent is the house of a serial killer?”. As hysterica...

Dunkin’ Donuts A world-renowned brand for one of the greatest American food discoveries, the donuts. Founded in the early 1950's, the brand has grown into an American household name and expanded its roots to the South East Asian countries as well. One of the major coffee-sipping countries in the world, South Korea has become a large market for dunkin’ and other major players all across the globe. it is said that there is a coffee shop on every street and block in South Korea, that's how much they love their coffee. There is a healthy competition among the coffee shops in South Korea due to the increasing demand for coffee and since there is competition, innovative Companies like Dunkin’ come up with mind-boggling marketing techniques. Dunkin’ came up with an innovative solution to increase their coffee sales. They observed that the South Koreans like to take the bus when they are going to and from work. They analyzed the routes with the most traffic and the plans where they cou...

Its not too often do we see a nation pick a fight against a private company. With the trade war between USA and China increasing under the Trump administration we also sense a cyber war brewing. Ever has your privacy been invaded? did it tick you off? Well, the United States government certainly resented the invasion of its privacy! shocking! Considering that’s the first time the world's most powerful country, USA has a problem with invasions. With the war between USA and Huawei, the world technology and data security is put at stake.   To give you'll a brief background about Huawei, NO its not a vacation destination (that's Hawaii)  Huawei is a  33-year-old Chinese multinational company. It  was one of the fastest growing brands in the telecom industry creating the state of the art products and flooding the market (just how the Chinese businesses work)  It is the largest telecom equipment manufacturer in the world (followed by Nokia and Ericsson) and also the ...

With China at the epicentre of the controversies originating due to the Corona virus pandemic, global supply chains are set for a major reshuffle as it exposes the vulnerability of many companies that rely heavily on China for most of the manufacturing needs. Be it automobiles, electronics, pharmaceuticals, steel etc, companies all around the world are in evaluating safer and more economical places like Vietnam, Thailand, India, Mexico etc to set up their manufacturing units. Companies who placed Chinese manufacturing facilities as the heart of their companies are now facing heart failures.  From Apple, Nike, Harley Davidson, Panasonic, Samsung, Steve Madden, Asics, Skechers, Mazda etc a large movement of companies out of China has been observed over the past few years. With rising labour costs, shortages of workforce, a trade war with the United States, the rise of manufacturing hubs in South-East Asia and now a pandemic that originated on its mainland...