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Inter-multi-national trade

The NewsLog of Flemming Funch
 Inter-multi-national trade2004-06-09 05:40
by Flemming Funch

Rebecca Blood mentions an article in the Economist. It is about governments trying to tax corporate profits, and multi-national companies cleverly avoiding it, by switching things around between countries. There is this little tidbit of information:
60% of all international trade is between subsidiaries of the same company.
Seems shocking somehow. Big companies just moving things around between different parts of themselves. I can guess that most of them are equally good at moving their profits around, until there's just a sufficiantly miniscule amount left to show, in a jurisdiction where corporations already pays little or no taxes.

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