What Is “Dumping”?

Supposedly, dumping is the practice of a foreign company “selling below cost”—but in almost all cases, the dumping company is not losing money. © 2018, Farok J. Contractor, Rutgers Business School (Also see my April 13, 2018 post,TEN QUICK FACTS ABOUT US TRADE: Deficits, Dumping, and Discords, in which I introduced the topic of dumping … Continue reading What Is “Dumping”?

The US-China Trade Spat: How the Public, Media, and Politicians Can Be Deceived by Data

© 2018, Farok J. Contractor, Rutgers Business School   Trade Statistics Can Be Less Than Half the China Story Looking at trade statistics alone is misleading because they lack overall context. The $337 billion US deficit with China in 2017 sounds scary. But a review of other economic factors provides insight into the larger picture. 1. … Continue reading The US-China Trade Spat: How the Public, Media, and Politicians Can Be Deceived by Data

Globalization Continues – And Multinationals Play by Rules Set by Other Nations (Despite What Trump Says)

© 2017 Farok J. Contractor, Rutgers Business School  Globalization is driven by two inexorable logical constructs: (1) Multinational companies go and sell where enough customers are located, serving foreign markets by whatever means possible. And: (2) Multinational companies produce (or outsource) wherever it is rational or cheap to do so following the rules of various countries … Continue reading Globalization Continues – And Multinationals Play by Rules Set by Other Nations (Despite What Trump Says)

What Is Globalization? How to Measure It and Why Many Oppose It (Part 1)

© 2017 Farok J. Contractor, Rutgers Business School The rise of nationalistic political leaders has spanned the globe—from Donald Trump and Marine Le Pen in the West, to Recep Tayyip Erdoğan in the Middle East, to Narendra Modi and Rodrigo Duterte in the East. To varying degrees, each of these leaders espouses an “our country … Continue reading What Is Globalization? How to Measure It and Why Many Oppose It (Part 1)

Tax “Amnesty” for Multinationals—But Not for Illegal Immigrants

© 2017 Farok J. Contractor, Rutgers Business School Republicans want a one-time tax of the money currently stashed overseas at a "tax holiday" rate of 8.75 percent, according to the House blueprint, while Trump has called for 10 percent. (Reuters, January 25, 2017)[1] As a professor of International Business I am in favor of ethical business, … Continue reading Tax “Amnesty” for Multinationals—But Not for Illegal Immigrants

The G20 Summit in China: An Annual “Talking Shop”? Or a Potential Bedrock of Global Civilization?

© 2016 Prof. Farok J. Contractor, Rutgers Business School Note: A version of this article was also published on The Conversation as How the G20 can ensure the marvelous gains from globalization aren't lost. What do summits such as the G20 accomplish? Posing for pictures after their summit, the leaders of the G20, a mixed bag of … Continue reading The G20 Summit in China: An Annual “Talking Shop”? Or a Potential Bedrock of Global Civilization?

Tax Avoidance by Multinational Companies: Methods, Policies, and Ethics (Updated on August 29, 2018)

© 2018, Farok J. Contractor, Rutgers Business School An earlier version of this article was published on this site on May 5, 2016, and also in AIB Insights, Vol. 16, No. 2 (2016). Recommended Citation:  Contractor, Farok J. Tax avoidance by multinational companies: methods, policies, and ethics. Rutgers Business Review, Vol. 1, No. 1, pp. 27–43 (2016). Also see … Continue reading Tax Avoidance by Multinational Companies: Methods, Policies, and Ethics (Updated on August 29, 2018)

Happy Tax Day, USA (April 18, 2016): How are corporations and individuals footing the tax bill?

© 2016 Prof. Farok J. Contractor, Rutgers University Source: The Economist, April 9, 2016 Individual Americans will finish filing their returns on April 18, 2016, contributing approximately $3.1 trillion in income and social insurance (Social Security and Medicare) taxes to the highest federal government revenue of any nation on earth. But the US government will spend … Continue reading Happy Tax Day, USA (April 18, 2016): How are corporations and individuals footing the tax bill?

Inversions…and Versions (of Tax Truths)

© 2016 Prof. Farok J. Contractor, Rutgers University NOTE: This article first appeared in YaleGlobal Online, a publication of Yale University MacMillan Center, April 12, 2016. Portions reproduced with permission. Subsequently, it also appeared on The Conversation (US Edition), April 20, 2015. Sign up for their newsletter here. Companies “...effectively renounce their citizenship…[by using] insidious tax loopholes...fleeing the … Continue reading Inversions…and Versions (of Tax Truths)

International Tax Avoidance: Clarifying Multinational Company Tax Issues

© 2015 Prof. Farok J. Contractor, Rutgers University The question of multinational companies avoiding taxes is inevitably going to become a hot issue for the US, Europe, and other major economies. Voices from both the political left and right have an ax to grind. Moreover, three separate tax issues—(1) the average tax US-based multinationals actually pay, … Continue reading International Tax Avoidance: Clarifying Multinational Company Tax Issues