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Doing business in Europe (German) 2 - Essay Example

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This paper discusses the problems faced by large companies in their attempts to establish and maintain operations in countries outside of their countries of origin, and essentially explores how they dealt, are dealing with those problems. There is no question that different…
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Doing business in Europe (German) 2
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Download file to see previous pages logical changes, and even environmental changes generate ever new problems and challenges which companies must face in order to continue to operate successfully. For instance, changes in the enforcement and interpretation of tax laws in Europe have had an impact on the operations and viability of such companies in the European continent. The problems are tied to the way Europe for instance is pushing for higher tax collections from HP and other American firms, and that these problems in turn affect the profitability and the viability of companies such as HP (Duncan, 2012). Does HP enter at all, and what kind of entry strategy makes sense in light of this problem? When it has entered, does it pull out and miss out on the large and lucrative European market for computing products and services, or does it adapt and shift strategies in order to properly deal with the problem of more persistent and higher tax collection efforts on the part of the European governments? This is one case among many others that this paper discusses, presenting the problems faced by companies such as Siemens, BMW, Airbus, and Mercedes Benz, and also presenting the ways in which these companies solved these problems, using a variety of approaches specific to their circumstances and the problems that they faced, with a focus on the German market (The Economist Newspaper Limited, 2013).
In the case of HP and other American companies operating in Europe, the problem has to do with the way European governments have been pushing to collect more taxes from those companies, who in turn have been trying to move the other way via a global practice that sees those firms trying to avoid paying taxes by financial accounting maneuvering so that profits are reported in so-called tax haven territories. This is tied to the problem of HP being able to enter and operate successfully in the continent, and in what manner. In the end the solution seems to be to financially retain the identity of HP as an entity ...Download file to see next pagesRead More
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