Reference no: EM133289208

Assignment:

Using the link given below, watch the following video in order to answer the questions:-

The Norwegian hamlet of Vik was nearly bankrupted in 2007 due to speculative investing in U.S. hedge funds. Why has it become so difficult for communities, companies, and individuals to protect themselves from financial volatility? This program looks at the inner workings of the global economy, examining the mechanics behind unanticipated bubbles and catastrophic crashes. Experts including best-selling author Michael Lewis (The Big Short: Inside the Doomsday Machine) and economics Nobel laureate Joseph Stiglitz give an unflinching account of the contemporary financial landscape, and Vik's unwitting involvement in the Terra Securities scandal serves as a case study.

After watching this movie, briefly address the questions below:

1. Name and briefly discuss one area in finance which is mentioned in the movie, and which led to the financial collapse.

2. What are some of the problems described in the movie that are not necessarily policy related, but nevertheless contributed and continue to contribute to potential bubbles to grow in the near future?

3. Do you believe the COVID - 19 pandemic and its aftermath, or the Ukraine-Russia war, could have a similar impact on global trade and finance/economy as did the housing bubble of 2008? Why/Why not? Explain.

4. Should the global community ban corporations from avoiding local taxes by passing international regulations using the World Bank or other global institutions to do so?

Here you may consider how NGOs/IGOs could serve as vehicles to enforce the international policy.

5. How can/should nations enforce such potential policy rules related to corporate taxes and ensure that large companies can't avoid paying taxes?

Remember that generally, taxing a company is based on its use of local resources; such resources can be land, buildings, roads, airports, railways, or human resources; when companies can avoid paying taxes, it means those local communities, counties, cities or countries are left with paying that portion of the bill and allowing corporations to benefit without contributing in any way to the local community for the use of such resources.