Question

In: Economics

Find a country that has some interesting financial laws regulations or practices that can make doing...

Find a country that has some interesting financial laws regulations or practices that can make doing business there a challenge.

Discuss how imports and exports differ from the U.S. standards.

Solutions

Expert Solution

Countries like India have various laws and regulations specifically in Telecommunications sectir which makes the business landscapes unsustainable.

This is largely due to cascading of taxes like spectrum charges, licensing costs, USFO fund charges, service charges/GST, infrastructure development cost, spectrum auctions cost and on top of it various levies like excise, customs, VAT on imports and exports which lead to extremely lower marginal business and unsustainable in long run. Taxes like Retrospective taxes and Dividend distribution taxes make businesses more uncompetitive and hence trade regulations are also different than from Us where trade is passed through very few checkpoints and cycle time is low.

However in India it is exactly opposite and has various strict checkpoint policies, verification costs, multiple clearance and delayed decision making process by governing authorities.


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