Tax Havens: worth the reward?

In many regions around the world, more often than not, third world and second world countries, such as the middle east and indo-asia and particular parts of Europe, there exists tax havens.

tax havens are areas of the world where taxes are either extremely low or non-existent. this can be accredited to many possible probabilities. For example, in the middle east, oil producing nations make so much profit from their sale and supply of natural resources that the governments do not require any additional sums of money from its populace. Infrastructure, public goods and public services are all paid for by the oil supply.

whereas in other regions, the countries are so small or the populace is so few in number that the government does not require large sums of money to fuel its maintenance and provision of infrastructure and services.

having a tax haven in place means that individuals with large sums of money or corporations who wish to retain a larger amount of their profits for investments and dividends will look to invest money in banks and organisations within the country. this further increases the amount of money flowing within the economy, and allows for even greater growth, employment and improvement.

however host countries of the investors will have less money flowing within their respective economies, meaning that their economies will shrink and growth will be slow as investment decreases.

http://www.businessreviewcanada.ca/money_matters/the-top-tax-havens

 

Netflix Moneyball

Netflix has been employing a curious strategy recently to respond to increased competition from amazon’s new online streaming service, and companies creating their own respective websites and programs to make their shows available on. In ‘Moneyball’  Brad Pitt, as the manager of a baseball team, chooses to buy mediocre players with potential for a quarter of the price of a current star player, ‘to create a roster’.

for example, the team he eventually ends up with is a extremely cohesive team that is winning as many players are more than likely to secure a base. Netflix has been employing a somewhat similar strategy as can be seen from the risks taken to revive cancelled or ‘dead’ shows under their own brand name as the risk is relatively small, it has seen successes in shows such as Arrested Development  and The Killing, whose rights have been purchased from their respective owners and produced and provided exclusively on Netflix. Whereas House Of Cards has been completely developed through large research and development investments exclusively for Netflix, and has met with resounding success.

Albeit the riskiness of this method, the potential profitability of the projects in comparison to the investment made is much greater, and as it stands, this strategy is keeping Netflix in the lead of other streaming services.

http://www.forbes.com/sites/merrillbarr/2013/11/15/is-netflix-playing-a-tv-game-of-moneyball/

Tesla: Electric shares

Tesla is a revolutionary new company known for its revolutionary design of electric automobiles, the electric cars consume less petrol and there for pollutes less on average than any other road approved car and is able to match performance with even a modern-day BMW.

The cars are designed with not only the environment in mind as the consumer is also supplied with car models varying from luxury types to sports cars which can reach a staggering top speed of 205/MPH, which is revolutionary for an electric vehicle.

Tesla has opened to staggering positive public response, as sales continue increasing gradually to this day. By creating a corporation focused on only producing electric variants of modern vehicles it filled a market gap and is now the market leader in terms of this product.

However, there is no denying that the company still faces fierce competition from established organisations such as Toyota and Nissan and BMW who are now seeing the value of this new market and are now developing and selling hybrid and electric variants of their four wheel drive vehicles (an market segment Tesla has yet to enter) and family four doors and two doors.

The company’s share prices have recently been slowing down in their ascent as speculators now wonder whether Tesla’s unique selling point is really cause enough to grant it a fortified position in the market.

http://www.forbes.com/sites/chuckjones/2013/08/26/apply-the-brakes-on-teslas-stock/

Vancouver’s cruise industry

One of Vancouver’s many sources of revenue is it’s port, where not only large amounts of capital are shipped and transferred daily but additionally where up to 200 cruise liners end or begin their travels.

Cruises affect local economies greatly, it acts as a portable luxury hotel transporting hundreds of tourists from one location to another. At each respective dock, these tourists disembark to take part in guided tours provided by domestic and international organisations or take their chances exploring the surrounding area by themselves, either way, these tourists will use local infrastructure and services, dine at local restaurants and shop in domestic stores, this not only provides a stable source of revenue for local companies but also means that taxes will be paid by these tourists which will net the government revenue as well.

Unlike most ports, where cruises stop for a average of 8 hours to re-stock and re-fuel, and tourists don’t spend much time in the port’s respective country, Vancouver is what is referred to as a home port, cruise ships often end or start their voyages in Vancouver, meaning tourists will spend more time in Vancouver than in any other city they dock at, therefore it can also be said that more money is spent in Vancouver.

The city’s cruise industry is facing competitive threats from other nearby ports however, as, albeit the recent 49$ million dollar investment into its’ port, then number of ships docking at the city has been gradually declining, and increasing in the nearby ports in Seattle and Victoria.

http://www.vancouverobserver.com/life/travel/2010/04/13/cost-cruising

 

The Vancouver TV industry

One of Vancouver’s current industries is the local film production industry, episodes of shows such as Arrow, Fringe and Once Upon A Time are all filmed in Vancouver’s rural and downtown areas, this nets Vancouver the benefits of increased labor employment, increased tourism from fans and revenue from the employment of local capital and infrastructure.

So many shows and movies are filmed in Vancouver that it is not surprising for everyday pedestrians to spot celebrities and persons of interest shopping in malls or walking down streets, part of being a Vancouverite is also coping with the many streets that are closed for movie takes.

Recently however, in response to the trend of shows relocating from California, the American government has allocated a sum of tax credits to be given to production agencies to further entice the industry to film domestically to boost employment and tourism within the state.

As much as 31 shows, such as CBS’s ‘King and Maxwell’ and HBO’s ‘Entourage’ have been approved credits by the government and are now relocating to begin filming their next seasons in California.

This can cause a sharp fall in employment and revenue here in Vancouver, Canada, as this is but one of many examples of rising competition for the city’s filming industry.

http://www.latimes.com/entertainment/envelope/cotown/la-fi-ct-california-film-tax-credits-update-20130604,0,4180780.story