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Thank you for clarifying evasion vs avoidance. But in a larger context, there is some friction. The companies are trans-national. Countries, not. So by legal or
by jacobush 10y ago
Thank you for clarifying evasion vs avoidance. But in a larger context, there is some friction. The companies are trans-national. Countries, not. So by legal or illegal means, companies tend to shift their weight around to where the money stays with them.
To companies, legality is just an expression of power. If the counter party (the government) is strong, the company either focuses on legal avoidance (GM) or avoids the reach of the strong party (Ericsson avoiding US jurisdiction). If the counter party is weak (south american governments) they can be illegaly manipulated (Ericsson). If the government has strong local enforcement but little resources and incentive to go after international shady deals, the country can be used as an operations base but with no illegal activity taking place in THAT country. (Sweden and Telia Sonera, Ericsson.)