In 2011,many large transnational corporations with large amounts of cash earned,taxed,and stored overseas asked the U.S.government for a 'tax-holiday' in which they would be able to bring that cash back into the U.S.without paying additional tax.These corporations claimed that they wanted to be able to invest and spend that cash in the U.S. ,helping the U.S.economy,but refused to bring the money back to the U.S.if it was going to be taxed.This situation is made possible through __________________.

Question

Quizplus · Accepted Answer

Deterritorialization refers to the breaking down of traditional borders and boundaries, including those related to taxation. In this case, the transnational corporations are able to earn and store their cash overseas, and then request a tax holiday in order to bring it back into the US without facing additional taxes. This illustrates how deterritorialization can create opportunities for corporations to avoid taxes by leveraging their global reach.

In 2011,many Large Transnational Corporations with Large Amounts of Cash