Why Corporate-Led Globalization is Unsustainable

The video discusses the impact of globalization on tax rates, highlighting how multinational companies benefit from lower taxes while others face higher taxes. It explains how companies shift profits to tax havens, using methods like transfer pricing, intragroup borrowing, and locating intangibles in low-tax countries. The video quantifies the extent of profit shifting and its impact on tax revenues, particularly in Continental Europe. It suggests solutions like international tax coordination and formulary apportionment to address these issues.

What is formulary apportionment and how can it curb profit shifting?

What challenges exist in achieving international coordination on corporate taxation?

In what ways can individual countries protect themselves against profit shifting?

What is the overall message regarding the sustainability of globalization as discussed in the text?