Legal Aspects of International Trade and Enterprise

Legal Aspects of International Trade and
Enterprise
Total Word Count: 1944 words

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Question 1
Visa Inc.
Visa Inc. was founded in 1958 as BankAmericard, and it is an American organisation which
operates in the financial services industry (Visa, 2018). Since its incorporation, the
enterprise has expanded its operations in different locations of the world, and it offers the
facility of electronic fund transfer through its credit cards, debit cards, and gift cards,
however, the company did not operate in China. The services of the company are available
across the globe. Currently, the organisation is the world’s second-largest card payment
company in terms of card payment transactions and number of issued cards (Forbes,
2018a). The corporation has gained a positive brand image worldwide because it is known
for its e and reliable financial services which are available globally. The headquarters of the
enterprise is situated in Foster City, California, United States. The company has hired more
than 15,000 employees globally (Forbes, 2018b). The company has not disclosed the
information about an exact number of employees in Australia.
Total word count: 164 words

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Question 2
The legislative regulatory framework in Australia
The government of Australia is responsible for taking appropriate legal measures in the
country in order to establish a legal framework which is suitable for the economic growth of
the country. The objective of the policies implemented by the government is to ensure that
corporations are ethically operating in the country. The government focuses on ensuring
that the multinational corporations which establish their operation in Australia to offer their
products and services to Australian citizens comply with these policies. The purpose of the
regulatory framework is to ensure the safety of customers is maintained, and corporations
which offer their products maintain a high level of standard regarding protecting the
interest of customers (RBA, 2018). The Australian government is strict when it comes to the
imposition of these regulations, and the government imposes heavy penalties on
corporations which breach these policies. On the other hand, multinational corporations
contribute to the economy of Australia; therefore, the government also promotes their
operations by making changes in their regulatory policies. Visa Inc. has to comply with the
taxation policies in Australia while offering its services in the country. The implementation
of taxation policies is important in Australia since the tax collected from multinational
enterprises contributes to the overall GDP of the country which is invested by the
government in projects to develop the country and improve the lifestyle of its citizens (Bell
and Hindmoor, 2014).
The revenue generated by Visa Inc. is liable for tax at a rate of 30 percent, however, this rate
is not fixed, and the government has the power to change this rate in order to collect more
or less tax from companies (AOH, 2018). Visa Inc. operates in the financial services industry,
and it offers finance related services to its customers situated in Australia. As per the
taxation policy of Australia, the company is subject to the Goods and Services Tax as well.
The government imposes GST on all territories in Australia based on which Visa Inc. has to
pay GST on its services at 10 percent. Just as the corporate tax rate, the government has the
power to change the GST rate as well in order to collect more or less tax from the
enterprises. Furthermore, the Australian government is serious about the rights of