Question

In: Economics

If a U.S. company establishes a fully owned subsidiary in a foreign country, what aspects of...

  1. If a U.S. company establishes a fully owned subsidiary in a foreign country, what aspects of U.S. tax law should the company address?
  2. Discuss the implications of applying U.S. employment discrimination law extrateritorially.
  3. What role, if any, can a U.S. state play in regulating international trade?

Solutions

Expert Solution

Subsidiary is a company that belongs to another company and is called a parent company .The subsidiary structure can offer tax advantages like they may be subject to taxes only in their own state and country .If a parent country establishes a subsidiary in a foreign land , the subsidiary must follow the laws of the country where it is operating.

The united states constitution prohibits discrimination by federal and state government against public employees.Federal law prohibits discrimination in many areas like recruiting , hiring ,promotion policies ,training,compensation and disciplinary action.Under federal laws employers cannot discriminate against employees on the ground of race, sex, religion etc.

The US government has authority to regulate international trade.Individual states can't make their own agreement without the approval of the federal government. Both the legislative and judicial branches of the federal government play a role in creating international trdae laws.

Rahul Sunny answered 1 month ago
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