Assignment

VAZIM MAHAMOOD P

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Exercise 1
2

The top management of your company requested a report regarding the tax policies of the following countries: Argentina, Belgium, Bulgaria, China, Czech Republic, Denmark, Egypt, Germany, Italy and the United Kingdom. Prepare a table including the corporate and individual income tax rates and the value added tax rates (where applicable) for those countries.

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Tax rate
3

PROGRESSIVE TAX, PROPORTIONAL, OR REGRESSIVE. A progressive tax is one in which the percent paid as tax rises as the

amount rises (for example, personal income tax in many countries).

A proportional tax is one in which the percent paid as tax stays the same

as the amount rises (for example, sales tax, or corporate income tax in some countries).
A regressive tax is one in which the percent paid as tax falls as the amount

rises (for example, value added tax in some cases).

Thus, a person's applicable tax rate will depend on how much of each type of tax he/she pays as part of his/her total tax burden
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corporate income tax rates

4

S No 1 2 3 4
5 6 7 8 9

Country Argentina Belgium Bulgaria China,

Czech Republic Denmark Egypt Germany United Kingdom

Rates
35% 33.99% 10% 25% 19% 25% 20% 31.4% 28%
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Individual income tax rates

5

S No 1 2 3 4 5 6 7 8 9

Country Argentina Belgium Bulgaria China, Czech Republic Denmark Egypt Germany United Kingdom

Rates
35%
50% 10% 45% 15%

51.5%
20% 43% 50% 3/22/2012

Value added tax rates

6

S No 1 2 3 4 5 6 7 8 9

Country Argentina Belgium Bulgaria China, Czech Republic Denmark Egypt Germany United Kingdom

Rates
21%

21% 20% 17% 20%

25% 10% 20% 17.5%
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Tax policies vary widely from country to country, OECD study shows
7

12/10/2005 - The ways in which governments raise money through

taxation continue to vary widely across the OECD, (organisation for economic co-operation and development) with Denmark collecting almost 60% of its revenues from personal and corporate taxes and France less than 25%, according to data in the latest edition of the OECDs annual Revenue Statistics publication.
In North America, Mexico collects more than half of its tax revenue from

taxes on the sales of goods and services while the United States raises less than a fifth of its revenue from this source (see Figure 1 and Table1).
At regional and local level, different patterns are also visible. While most

countries use a mix of state and local taxes to finance sub-national government, Ireland and the United Kingdom rely exclusively on local property taxes and Sweden exclusively on local income tax
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Exercise 2
8

One of the Marketing Potential Indicators for Emerging Markets is identified as country risk. Utilizing the ranking provided by the global EDGE website, identify 5 emerging markets that exhibit the least risk for foreign investors.

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Market Potential Index (MPI) for Emerging Markets - 2011

9
Global marketing is becoming more and more important along the years with the

increasing trend in internationalization. Having too many choices, marketers face the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.
The focus of this study is ranking the market potential of countries identified as

"Emerging Markets" by The Economist magazine. These emerging economies comprise more than half of the world's population, account for a large share of world output, and have very high growth rates; all indicators of enormous market potential.

This indexing study is conducted by MSU-IBC (Michigan State University International Business Centre) to help companies compare the Emerging Markets with each other on several dimensions. Eight dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. Each dimension is measured using various indicators, and are weighted in determining their contribution to the Overall Market Potential Index.
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Market Potential Index For Emerging Market-2004

10

Overall Rank

Country Market Size

Market Growth Rate 80 84 78 82

Market Count Consumpt ry ion Risk Capacity 54 62 99 59 88 100 62 49

Overa ll Score 100 80 74 73

1 2 3 4

Hong Kong

Singapor 1 e South Korea China 12 100

5
8

Israel
India

1
47

75
96

82
77

57
38

69
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Year to Year11Comparison
Country Singapore Hong Kong China South Korea Czech Republic India 2011 1 2 3 4 5 6 2010 3 1 2 4 5 9 2009 1 3 2 4 5 11 2008 3 1 2 5 6 11 2007 3 2 1 6 7 9
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Graphical Representation
12

12 10 8 6 4 2 0

2007 2008 2009 2010 2011

2011 2010 2009 2008 2007

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Market Potential Index (MPI) for Emerging Markets - 2011

13

Overall Rank

Country

Market Size

Market Growth Rate 100 29 93 41 18 83

Market Market Consum Intensity ption Capacity 72 100 1 59 45 35 65 59 67 92 100 67

Commer Economi Market cial Country Overall c Receptiv Infrastru Risk Score Freedom ity cture 83 100 36 88 92 17 80 93 7 83 89 50 100 86 4 16 14 2 100 95 55 71 76 42 63 58 55 49 45 41 3/22/2012

1 2 3 4 5 6

Singapor 1 e Hong Kong China South Korea 1 100 10

Czech 1 Republic India 38

Year to Year Comparison

14 Countr y Singap ore Hong Kong China South Korea Czech Republ ic India

2011 2010 2009

2008

2007

2005

2004

2003

2002

2001

2000

1998

1997

1996

2 3 4

1 2 4

3 2 4

1 2 5

2 1 6

1 3 4

1 4 3

1 5 3

1 5 3

3 5 2

2 6 10

2 5 3

4 2 9

2 3 5

5 6

5 9

5 11

6 11

7 9

7 9

7 8

7 9

7 10

7 11

7 8

7 10

7 10

19 10

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15

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