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UM International Finance Types of Taxation & Letters of Credit Discussion

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Section A

National governments worldwide use three basic types of taxation to generate revenue: income tax, withholding tax, and value-added tax. Research the three basic types of tax restrictions in Germany’s tax jurisdiction.

In your answer, compare and contrast the three basic types of taxation that governments levy within the tax jurisdiction of Germany.

Evaluate the types of taxation that influence international operations and determine the optimal tax strategy you would propose for a company.

Provide evidence to support your recommendation.

Section A should have at least 300 words. Please include all references.

Section B

Conduct some independent research on letters of credit to better understand their function in international transactions.

In your answer identify at least 12 components of a letter of credit and state how those components protect both the buyer and seller.

Analyze the risks involved in using letters of credit in international transactions.

Propose a strategy for how to mitigate those risks.

Section B should have at least 300 words. Please include all references.

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