Exchange Rates and Export Opportunities This Paper
This paper compares exchange rates between Australia, Great Britain, and Japan from last February 28th, 2003 and August 28th, 2002. Analysis of where a company could focus its export business based on past current and…
Multinational Tax Planning: Currency, Credits, and H&M
The impact of currency values on commercial operations is a familiar topic for the international accountant. Much of the attraction of currency markets stems from its synthesis of all aspects of the world economy distilled into a single, digestible value. The significance of relative currency values rests primarily on their relationship to world markets and their interaction with international trade, investment, and monetary practices. A given exchange rate, when viewed in isolation, may at first appear to be little more than an abstraction. Yet, it exercises a significant influence on commercial relations as a pricing mechanism affecting every international transaction. The impact of exchange rate fluctuations on domestic aggregates can also affect the course of economic activity to the point that a sense of urgency is reached when dealing with volatile markets. As long as currencies remain the medium of exchange for commercial transactions, market fluctuations of relative currency values will continue to attract the attention of the investor, the banker, the speculator, and the policy maker alike. This paper will examine the tax planning logic for H&M, a large multinational retail clothing corporation based in Sweden with a significant presence in the United States.