Global companies and the adapt to market
Besides tailoring its products or services to the technical,
functional and local conditions, they must comply with the Accounting,
Tax, Commercial, Social Security and Transportation Laws of each country.
These aspects are very different from one country to another and will not change overnight.
If the firm will work with Public Sector, the same is valid plus the understanding
of necessity of certificates issuing to be eligible to participate in bidding processes.
The regulation of the financial system in some countries are internationally
renowned as a reference due to its transparency and consequent
mitigation of systemic risks. And this take us to the next issue
Advanced economies and emerging markets are another issue.
"Advanced economies have a high level of gross domestic product per capita,
as well as a very significant degree of industrialization.
Emerging markets generally do not have the level of market efficiency and strict
standards in accounting and securities regulation to be on par with advanced economies
(such as the United States, Europe and Japan), but emerging markets will typically have
a physical financial infrastructure including banks, a stock exchange and a unified currency"
(www.investopedia.com)
According to The Global Competitiveness Report 2015–2016 "Developing and advanced economies alike are subscribing more
and more to the notion of inclusive growth, and there
is growing debate about the relationship between
competitiveness and inclusiveness".
According to The Global Competitiveness Report 2015–2016 "In emerging markets and developing countries in
particular, there is scope for raising productivity
through structural reforms. The most striking change is the surge of access to finance
as one of the most serious problems for business in many
countries, a consequence of the global financial crisis.
Because of deleveraging and stricter regulations in the
banking sector, uncertain economic prospects, and despite
extremely low interest rates, obtaining finance is still very
difficult, especially for small- and medium-sized enterprises."
So how market structure is affected by the regulatory environment
and the effects of taxation is an important issue to be studied.