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The Law of One Price

Thomas Shelton, CPA “The Law of One Price states that in competitive markets free of transportation costs and barriers to trade (such as tariffs), identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency”. (Global Business Today 6e, Hill p. 316)  Based upon this principle, if the Chinese currency is pegged to the...

Entry Modes & Canadian Firms

Thomas Shelton, CPA The development of entry modes involving the Canadian firm could consist of the following three methods 1) Manufacture the products at home and let foreign sales agents handle marketing, 2) Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing, and 3) Enter into an alliance with a large European pharmaceutical firm. The products...

Protectionism and U.S. Policy

Thomas Shelton, CPA PART A Arguments in favor of government intervention in international trade International trade implies several entities and also several counties or states with different legislations and procedures. While free trade is becoming the most commonly accepted way to promote exchange of goods and services, government intervention or regulation can help protect consumers, national...

Why Employees Commit Fraud

Why Employees Commit Fraud It’s either greed or need. by Joseph T. Wells, CFE, CPA It is important for CPAs to understand what motivates people to commit fraud so they can better assess risk and assist employers or clients in implementing appropriate preventive and detective measures. One element common to most occupational fraud offenders, from the CEO to the rank-and-file employee, is that...

Note these December tax deadlines December 17 – Due date for calendar-year corporations to pay the last installment of 2012 estimated income tax. December 31 – Deadline to complete 2012 tax-free gifts of up to $13,000 per recipient. December 31 – Deadline for paying expenses you want to be able to deduct on your 2012 income tax return. December 31 – Deadline for taking 2012 required...

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