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The international capital flow growth contributes to the international tax rate competition activation. Different countries have to fight for the bigger cash-flows and attract foreign investment and the income of the major taxpayers. At the same time the competition in this area is special as there are some barriers between the domestic and international markets to be broken and the rules and regulations in the tax sphere need to be harmonized.
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The adoption of the WTO pattern-based unified international trading rules and policies did not elimi¬nate the international trade conflicts. The main subject matter of the trade conflicts is the so called mala fide competition. The term is understood to mean primarily the price dumping performed by the exporters. From the point of view of the market economy, the measures confronting the dumping are a rather controversial matter. On the one hand, price dumping is seen as a manifestation of the mala fide competition in the international trade sphere, and the WTO policies permit the use of the anti-dumping measures. On the other hand, the very anti-dumping measures often become a masked tool used by the protectionist policy champions in order to protect the national economy from the competing importers.
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Until recently researchers of modern economics did not pay enough attention to knowledge econ¬omy disregarding the significance of knowledge as an economic category.
In what way does knowledge economy differ from classical standard economy? Its revolutionary character lies in the fact that not only technologies but also the whole mechanism of knowledge production began to be included into economy, i.e., knowledge economy implies not only produc¬tion economy, but also universities, fundamental science, communication system, patent system, applied science, research and development, i.e., the whole integrated complex.
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| Many generations' experience shows that the competition is almost as powerful as the atomic en¬ergy. It could be used for the good cause if there are some management mechanisms in place, and for the bad cause, if we allow it to develop chaotically and be used as a tool by the social groups which totally lack the social ethics awareness. Continue... | |
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The international capital flow growth contributes to the international tax rate competition activation. Different countries have to fight for the bigger cash-flows and attract foreign investment and the income of the major taxpayers. At the same time the competition in this area is special as there are some barriers between the domestic and international markets to be broken and the rules and regulations in the tax sphere need to be harmonized.
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"The Russians, as far as the political economy is concerned, have been moving in the wake of the Western countries' development; therefore, in the light of the unfounded cosmopolitism that has been the czar of the public thought in Russia in the last few decades it is small wonder that the political economy rules and their meaning are incongruously understood by the public".
(Count Sergei Witte, Saint-Petersburg, 1912)
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