4 ms·
They can always just change nationality. That's a pretty common thing for companies to do. So nationality doesn't matter; it's a flag of convenience at best. T
by tormeh 11y ago
They can always just change nationality. That's a pretty common thing for companies to do. So nationality doesn't matter; it's a flag of convenience at best.
The real issue is that the US government has the final say on which products are legal to sell in the US. If the USG says that no lumileds or products containing lumileds can be sold or imported in the US, then Lumileds is fucked. You don't want to lose the US market. Same goes for the EU.
- culturestate 11y agoYou can't just pick up your company and move it from one country to another, especially when you're the size of Lumileds. The process for changing domicile is called inversion, and to make it work the U.S. corporation must either be acquired by or merge with a foreign corporation -- and that transaction would, again, be subject to review by CFIUS. Market access is a big carrot, yes, but it's not the stick in this case.
- DrScump 11y ago<You can't just pick up your company and move it from one country to another> This has happened several newsworthy times in the past few years via the "inversion" mechanism, e.g. Medtronic, Pfizer, Applied Materials...
- progressive_dad 11y agoWhat's stopping this becoming a new business model for SeaLand? Registering corporations as international entities undercutting the most favorable combinations of incentives from all current countries?
- culturestate 11y agoSeaLand isn't recognized by any nation, and corporations can't operate as stateless entities.