Quattroporte Incorporation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

b. British Virgin Islandsi

i. BACKGROUND & ECONOMY

The British Virgin Islands is an element of the British colony of the Leeward Islands; the U.S Dollar is the legal currency. British Virgin Islands are located at Caribbean, flanked by the Caribbean Sea and a North Atlantic Ocean, the east of Puerto Rico. In addition to this, it operates in tourism, the light industry, the construction, concrete block, rum and the offshore banking center industry. It accumulates tax and revenues as much as 27.4% of GDP (2013 EST.). Isle of Mann has $36.1 million (1997) of debt outstanding and uses U.S Dollars for exchange rates. The GDP as in Purchasing Power Parity is $500 million and GDP as in official exchange rate is $1.095 billion with real growth rate of 1.3%. The highest percentage of labor force (almost 60%) is employed by the service sector, and the unemployment rate is found to be 8.7%. English is the official language of British Virgin Islands.

ii. GOVERNMENT

The Government of British Virgin Islands is operated by United Kingdom by the Governor who is appointed by Queen Elizabeth and the entire defense sector held under control of UK. The Chief Minister is appointed by the constitution of 2007 through a process of general elections. The four major BVI political parties are the National Democratic Party (NDP), United Party (UP), Concerned Citizens Movement (CCM) and Virgin Islands Party (VIP).

iii. TAXATION

Taxation in British Virgin Islands is extremely lax, which makes it one of the tax havens. The major forms of taxes are exempted but they do charge tax on income although the rate is set to zero. As tax is not the primary source for Government revenues, the revenues are generated by the annual fees from offshore companies who operate in the territory. There are no double tax arrangements that relieve the foreign tax and BVI is also exempt of tax on capital gains.

iv. INTERNATIONAL RELATIONS

British Virgin Islands have strong regional relationships with organizations such as OECS (Organization of Eastern Caribbean States) and have strong relations with international organizations such as IOC, UNESCO, UN, UPU, CBD and INTERPOLE. From these international organizations, British Virgin Islands secure grants for the development of infrastructure.

v. INTELLECTUAL PROPERTY PROTECTION

British Virgin Islands do not have conventions on intellectual property, but still gives local protection under Trade Marks Act. The new Trade Marks Act also a permits registration of service marks. However, Copyrights in BVI is filed under the Copyright (Virgin Islands) Act without advantage of local copyright registry. Moreover, patents are registered under the UK Patents Act in British Virgin Islands, which has the maturity same to the patent granted in UK.

vi. NON-TARIFF TRADE BARRIERS

The non-tariff trade barriers include trade license, which requires a standard form to be filled along with the submission of all supporting documents and if approval is given to trade then, the collection fees is charged on the basis of the type of business. Other barriers include unreasonable standards or standards setting procedures etc.

vii. TRADE REGULATIONS

The employer needs to have a trade license and BVI lacks implementation of trade agreements, negotiations and treaties.

viii. CAPITAL FLOW/REPATRIATION OF PROFITS

In British Virgin Islands, the repatriation of capital needs no approval. There is seen to be no exchange or controls with respect to funds transfer in BVI, with permission granted to companies to repatriate their profits, dividends and other management charges.

c. Delaware (U.S.A)

i. BACKGROUND & ECONOMY

It is situated on the eastern seaboard of United States, Delaware is a state bordered by the Atlantic Ocean followed by the Delaware Bay. With a population of 925,749 as of 2013, Delaware has the highest employment levels in the education, health and social sector. Exchange rate is measured in U.S Dollars. With an estimated population of 897,934 Delaware stands 45th among the states.

ii. GOVERNMENT

The provision of 1897 says that Governor would be elected for a four year term. The general assembly comprises of 21 members in the senate and 41 members as representatives of house. In addition to this, Delaware is also represented in U.S Congress by 2 senators, 1 representative and also has three electoral votes..........................................

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