Summary
Summary TP - cross-border restructuring (EXAM SCHEMES)
- Course
- Institution
tp cross-border restructuring
[Show more]
Seller
Followmatteobarchi97
Reviews received
Content preview
TP: cross-broder restructuring A cross-border business restructuring is defined as ‘the cross-border redeployment by a MNC of
functions, assets and/or risks’. Hence, a restructuring could take place in the change of the following
situations:
(i) Physical structures -> location, organisation, working conditions
(ii) Technological structures -> equipment, processes
(iii) Accounting structure -> balance of assets and resources
(iv) Organisational structure -> the division of responsibilities and tasks, information and
coordination systems
(v) Demographics -> the characteristics of employees
(vi) Phycological structure -> the prevailing mentality in the company
The primary objective of business restructurings is to:
(i) Maximise synergies and achieve economies of scale
The consequences of a business restructuring are best measure by understanding the value chain.
These could be outlined as follows:
o As with any other transactions, cross-border business restructurings must be priced in
accordance with the ALP.
Business restructuring give rise to complex TP issues because (i) such transactions do not only imply the
sale of goods/intangibles or services but also include (ii) the transfer of an activity (such as functions,
persons, assumption of risks)
Despite the fact that each business restructuring is unique and will have to be analysed on its own, it is
often the case that MNC reorganise their business activities in order to implement the centralised
entrepreneur model.
o Consequently, the three pillars of the MNC (ie (i) R&D; (ii) manufacturing; (iii) distribution) will
likely be subject to the restructuring in order to implement the centralised entrepreneur model
This would be the case where fully-fledged R&D, manufacturing or distributors are
turned into contract entities and the key activities are shifted to the central entity.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller matteobarchi97. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.33. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now