American Companies Are On The Move Case Study

Decent Essays
The essential goal of any business ever has been to make the most money that they could. This element is the very basis of what we know today as commerce, but the way modern businesses have done this is completely different and far riskier than what businesses did in the past. One controversial way they are doing this is through “outsourcing” in which companies move overseas for a variety of reasons and it has already become a commonplace practice in modern business because of its benefits, but it is the unforeseen consequences – that undermine these benefits – which are just as ground-breaking.
The main argument made by the author in his work, “American companies are on the move” is that American companies are merging with foreign firms
…show more content…
What the author, Pat Regnier, is saying in his work “Everything You Need to Know About Companies Leaving America for Taxes” is that large American companies are abandoning their American domain and hanging Uncle Sam out to dry just to save on tax cuts. To be more direct, the author argues that these companies are taking over smaller corporations where tax rates are lower than in the US. They do this over and over again till they find a suitable location to “safely”escalate their profits. He writes, “The large American company is now a foreign one, and taxed accordingly.” In this section of the author’s argument, Pat is suggesting that there is a “loophole” in the American tax system and it is creating all kinds of havoc, domestically and abroad. Putting it all together, the author`s belief is even though outsourcing is attractive, it is equally chaotic as it is beneficial. In my view, the author is mostly correct because business ventures such as these cause as many unwanted side effects as much as intentional attributes. More specifically, I believe that companies will benefit from outsourcing, but will also reach a point where chaos and order equal. For example, how Burger King had a crisis in its stocks when it’s headquarters moved. The instability of a potential location for the HQ coupled with the weak presence in the global market weakened investors’ confidence, forcing them to sell their
Get Access