Milestone Guidelines
In Module Eight, you will prepare a draft of the section of your final presentation that covers the topic of international business practices. You will include an explanation of how foreign currency change rates will impact the company and make recommendations on how to mitigate these risks. You will also touch on the key points of international tax laws, the benefits of tax incentives, and potential tax disadvantages.
For this project, consider this scenario: you have worked very hard and have just earned a promotion at Quality CPA firm. As part of your new responsibilities, you will be advising an influential client on their international aspirations. Their business has been booming and they are seriously considering expanding their operation overseas. They are concerned about the political and financial risks of such an undertaking.
You will build a multimedia presentation (utilizing audio, if possible, with speaker notes to elaborate) that addresses the upper management of this company. You will choose a country other than the United States. This country will be presented as a potential destination for the company, although other countries can be included, as the global market is the focus. The presentation must explore the company's potential expansion into the chosen country, the global market in general, and how that will impact their operations.
Specifically, the following critical elements must be addressed:
I. International Business Practice: For this part of the project, you will explain the implications of variances in international tax laws on organizational strategy. You will also explain how foreign currency transactions impact financial statement creation in accordance with GAAP.
A. Explain how foreign currency exchange rates will impact the income potential or financial risk of the company given their expansion into the global market.
1. What will this mean for the income and risk of the company?
2. How will foreign currency exchange rates impact financial statements?
B. Make recommendations for tools or strategies the company could use to help mitigate these risks.
C. Explain the benefits of international tax laws or treaties if your company expanded to your chosen country.
D. Provide examples of possible tax incentives offered by countries to attract investments or promote exports.
E. Explain the tax disadvantages that should be considered by your company and your investors when expanding globally.