Political Science 2211E Chapter Palan: Political Science 2211 Palan reading
18 Jan 2018
School
Department
Course
Professor
Document Summary
Foreign direct investment of multinational enterprises is often labelled as offshore. Offshore is used in a more restrictive sense to describe unregulated international finance. Many writers consider export processing zones as tax havens. Palan defined offshore as juridical realms marking a differential degree of intensity by which states apply regulation, including taxation. Defined as markets in which financial operators are permitted to raise funds from non- residents and invest or lend money to non-residents for free from regulations and taxes. Main advantage of offshore financial markets is the relative lack of regulation, including taxation. 80% of international banking transactions take place in offshore financial markets. Are centers that offer an array of tax and regulatory incentives for non-resident investors and the complete flexibility granted to the management of foreign assets to tax havens. Contributed to massive deregulation of the financial industry. Emergence of two additional types of offshore spaces: spontaneous offshore centers and international banking facilities, city of london.
