Impact of Globalisation on Corporate Taxation Policy: British Airways

This research project examines the impact of globalisation on the corporate taxation policy, using British Airways as a case study. The study explores the relationship between globalisation and corporate taxation, and how this affects the financial performance of British Airways. The objectives include understanding the impact of globalisation on the taxation policy adopted by British Airways, evaluating the correlation between globalisation and corporate taxation in the context of pricing strategies, and recommending measures for British Airways to gain competitive advantages. The methodology includes a literature review, research methodology, data analysis, and interpretation. The research questions address the measures to analyze the relationship between globalisation and corporate taxation, the impacts of globalisation on taxation policy, and the evaluation of globalisation's impact on pricing strategies. The literature review covers globalisation, taxation policy, and their interplay, with references to how globalisation affects the financial performance and corporate tax of companies. The research also considers the rationale behind the project and its significance in understanding the effects of globalisation on corporate tax policies, as well as the implications for British Airways' business strategies.

RESEARCH PROJECT

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................3
Research Background.............................................................................................................3
Aims and Objectives...............................................................................................................3
Research Questions................................................................................................................4
Rationale.................................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
The impact of globalisation on corporate tax. policy of British airways.........................5
The relationship between globalization and corporate taxation affect the financial
performance of British airways...........................................................................................6
The effects of relation between globalization and taxation policy on pricing.................8
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
Introduction:.........................................................................................................................10
Research Methodology.........................................................................................................10
Research Philosophy............................................................................................................11
Research Approach...............................................................................................................12
Research choice....................................................................................................................13
Data Collection.....................................................................................................................13
Sampling...............................................................................................................................14
Data Analysis........................................................................................................................14
Research ethics.....................................................................................................................15
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................15
CHAPTER 5: CONCLUSION......................................................................................................25
RECOMMENDATIONS...............................................................................................................26
REFERENCES..............................................................................................................................27

Topic: To analyse impact of globalisation on the Corporate Taxation policy- A case study on
British Airways
CHAPTER 1: INTRODUCTION
Research Background
Globalisation has assisted most of the business organisation in conducting their business
operations at the global scale. It is a process which is related with the interaction as well as
integration of all the business and human resources, thus making use of it in improving overall
business operational efficiency and performance level. Globalization has resulted in boosting the
level of corporate tax which has directly affected the revenue margin of most of the companies
thereby increasing their business operational efficiency level. With the ease in the availability
and mobility factor of labour as well as capital resources, it has resulted in increased in the
international tax competition and its rate. With the help of this research, one can understand that
how most of the individual and business firms are having freedom of gaining low tax rate
advantages in the foreign market. It will evaluate that because of globalisation and globalised
business economy, it has become almost impossible for most of the countries to charge tax at
high rates as it will result in to out flow of both the people and capital as well.
It is very much important for every business organisation to formulate effective as well as
sound business plans and strategies in line with the aims and objectives of the business. It will
assist many business firms in improving their business performance along with operational
efficiency. By bringing in such improvement, it also affects the level of company’s profitability
and productivity to a great extent. Also, it has provided base for companies for gaining benefits
by sharing if strong as well as effective business ideas, plans, processes, skills and technologies
across the national boundaries of countries. With the help of globalisation, it has enhanced
capital growth rate along with improvement in the per capita income of many countries. Increase
in the level of globalisation because of competitive pressure has assisted in making improvement
in the context of governance and better labour protection.
Aims and Objectives
Aim
To evaluate overall impact which globalisation has created on the corporate taxation
policy in the context of British Airways

Objectives
 To understand relationship in between globalization and corporate taxation policy
affecting the financial performance of British airways.
 To analyse impact of globalisation on the taxation policy adopted by the British Airways.
 To evaluate impact of correlation of globalization with the corporate taxation policy in
the context pricing strategies.
 To recommend measures to be adopted by the British Airways for gaining competitive
advantages from the changing corporate taxation policies.
Research Questions
Ques. 1. What measures to be undertaken to analyse relationship between globalization and
corporate taxation policy affecting financial performance of British airways?
Ques. 2. What are the impacts of globalisation on the taxation policy adopted by the British
Airways?
Ques. 3. How to evaluate impact of globalization & corporate taxation policy correlation in
the context pricing strategies adopted?
Ques. 4. Any recommendations to the British Airways for making improvements in its
corporate taxation policy for gaining competitive edge.
Rationale
With the help of this research project, the researcher has been able to evaluate impact of
globalisation on the corporate taxation policy. Globalisation has become one of the most
important aspects for many business organisations in increasing their customer base across the
global level. Because of globalised business economy, it has resulted in making most of the
business firms in becoming independent and improving base of their performance. By
undertaking this research study, it will help many other scholars as well as researcher in
completing their own research project in effectually manner. Also, this research project defines
about core impact which has been made by globalisation on the corporate taxation policies of
many companies and measures as undertaken by them for coping up with such aspects.
CHAPTER 2: LITERATURE REVIEW
Globalisation: It is a process of spread of information, technology and goods across the
world. In business contexts, globalisation is a procedure under which a business develops an
international influence by its operation and start operating in the global market under

international trade and commerce. This bring both positive and negative outcomes on the
businesses (Globalisation and its implication on tax policy, 2019).
When businesses globalise their operations, it affects international trade, relations &
economy. Along with which, aspects such as technology, social & cultural dimensions and
corporate world also gets influenced.
Taxation policy: the tax policy is the choice by a government as to what taxes to levy, in
what amounts, and on whom. It has both microeconomic and macroeconomic aspects. For
organisations which globalise their operations has to follow taxation policies of various nations
in which they operate which affects their activities.
The impact of globalisation on corporate tax. policy of British airways.
As per the view point of Crane and et.el., (2019), Globalisation has been defined as a
process of interacting and integrating the economy, business processes and operations of
company of one country with the economy of another company operating in the world. Due to
globalisation, it has benefited several business firm by providing assistance in form of
conducting of business operations at the global level. It has provided ease in making interaction
of people, companies and government across the world enabling them to perform and increase
their market interaction across the boundary. By making use of Globalization concept, British
Airways has been able to increase its trade and commercial activities thereby leading to
acquisition of large market share and profitability ratio. It has provided number of choices for
consumers related to the sourcing of products and services in virtual manner across the world.
On the other hand, Brejning, (2016), argued that with the introduction of Globalization
concept, it has made it difficult for many countries to levy tax at high rate for its services and
products. By charging high percentage of tax amount, it will result in flow of resources including
human, capital and technological one. Every business organization has to make proper and
timely compliance of applicable taxation policies, rules and regulations for remaining
competitive in the global market and economy. Due to globalization, Taxation policy followed
by the British airways has got affected. Earlier before introduction of Globalization, charging of
tax at high rate is feasible for both the company and economy as there is no other option
available for its consumers to sources resources in form of products and services at low rate from
any place in the world. British airways have to make compliance of different business as well as

corporate related taxation policy as per the business operations conducted across the world, non-
compliance of which can make them penalized and charging of high cost.
According to the Evertsson, (2016) globalization increases the trade between two
countries. It provides global platform to perform the activities and explore the business. It helps
the companies to increase their profit by selling their goods and services to the global customer
which ultimately increase their income by charging higher corporate tax on their services.
Globalization increases the business of company because it provides global market to expand the
business. At the same time, it also provides the variety of customer with different interest and
income level. As per the facts and figure due to globalization the business of organization is
increased by 30% which indirectly increases the profit of the company. According to the author
there are little evidence that globalization force to the downward movement of corporate tax and
revenue. Globalization boosts the corporate tax and revenue of the company by increasing the
business.
But Whait and et.al., (2018) argued that globalization decrease the income of the
company because due to the globalization government force the companies to reduce their tax
rate on corporate profit which ultimately affect the profitability of the company. As per the
government they force the companies to minimize the tax rate by two ways. Firstly, they force
the company to reduce the statutory tax rate on the corporate profit and secondly the government
force the companies to reduce the incentives on corporate investment. The both activities of
government ultimately reduces the profit of the company. As per the views of author the impact
of globalization on corporate tax policy is negative for the company because it reduces the
productivity and profitability of organization. They explain that globalization reduces the
corporate tax by 30% in UK market, 35% to 40% in Japan and 16.5% in Canada by 2011.
The relationship between globalization and corporate taxation affect the financial
performance of British airways
As per the thoughts of Morrell, (2018), concept of Globalization and corporate tax are
interrelated as both creates significant impact on the working and operations of business
organization taking place at the global level. Also, the financial performance and position of
company gets influenced by the adopting concepts and ideas related to globalization. With
increase in functioning of globalization and competitions in the taxation policy, it has provided

ease and assistance to large number of individual consumers and businessmen related to freedom
and selection of business as well as human resources, capital and technology which are charging
taxes at very low or minimal rate across the world market. This has resulted in increase in the
productivity level thereby minimizing cost of capital and maximizing the value of firm. Also, it
supports British airways in increasing its profitability level and improving customer satisfaction
level by rendering better improved and quality services to its customer at large level. It thus
brings improvement in the financial performance of the company providing them large customer
base.
However, on the critical note, it has been argued by Waltenberger and Ruff - Stahl,
(2018), that by implementing the concept of Globalization in the business operations, though it
has assisted in facility of conducting business operations at the global level, but it has created
some adverse impact on the financial performance of British airways as well. Companies which
are having monopoly businesses before introduction of globalization, are capable of charging
high tax rate for their products and services which in turn has to be purchased by other business
firms as there are no options available for them to source out resources at reasonable and
affordable prices. This provides huge benefits to all the monopoly business firms thereby
increasing their production, profitability and performance level. But with globalized business
economy, it is very easy to source out all the required resources from abroad having low tax
margin which affects the financial performance of the monopoly company.
As per the views of Crane and et.al., (2019) the globalization and corporate tax are
interrelated. The performance of one factor affect the performance of other factor. Globalization
increases the productivity of the company which improve the financial performance in the
market by attracting more and more customer towards the company. Due to globalization global
customer attracts towards the different services of companies and contributes in the financial
performance. Interrelation of globalization and corporate tax make a positive impact on the
financial services.
The interrelation of corporate tax and globalization influence the companies to innovate
their services to retain in the market and gain the competitive advantages. It differentiates their
product and services from the other companies and provide a different way to improve the
financial performance. It also encourages them to offer variety of services to attract customer and
investor to invest or participate in the financial performance of the organization. Global

communication makes possible the international trade and financial transaction by understand
the global requirement. Globalization mobilizes the investment of different investors. The
innovative services attract the investors to invest in the company which perform better in the
market which ultimately affect their financial performance.
But the same time author Jones and Temouri, (2016) criticize that due to globalization the
government force the companies to reduce the corporate tax on their services which ultimately
decreases the profit of the company. Globalization reduces affect the financial performance of
the company by reducing their corporate profit. Globalization also increase the competition in
market and due to cut-throat competition organization has to reduces their prices to sustain in the
market and provide their goods and services to the customer at lower profit margin rate. The
relation of globalization and corporate tax influence the companies to provide their best services
to the customer at lower profit margin rate, so the customer can enjoy the best services but it
affects the financial performance of company.
Globalization increases the mobility of the investment that means the due to the
globalization investor easily mobilize their investment. So to retain the investor investment in the
company, government has to provide tax regime which reduces the corporate tax arise from the
personal income tax and consumption tax ultimately it affects the financial performance of the
company. It forces the organization to reduce their price to retain customer and investors.
The effects of relation between globalization and taxation policy on pricing.
Bozyk, (2019), has stated that, Globalization has provided more options and choices for
conducting business at the international level by making compliance of applicable business and
corporate related rules, laws, taxation polices. It has resulted in the increase in the level of
employment by creating more job opportunities by providing required and relevant business
resources, capital, manpower and technological aspects at reasonable and affordable prices. It
has help the British Airways in setting their price for products and services as per the
convenience of both the company and its customers. By using benefits of increasing
interconnectivity of trade, culture and techniques related to business operations it has been able
to increase its business production level and able to satisfy its customer needs. As a result, the
overall business performance and profitability has been increased along with high customer
retention base. Strategies related to pricing can be made in relation with used of better improved

business processes and globalized features, assisting in charging fair and reasonable prices for its
business products and services.
On this statement Van Hoa and Harvie, (2016), disagree by stating that, by using the
resources, business processes, technologies, capital and other business aspects of other countries
it will result in increase in the cost of business operations including production, manufacturing
etc. Also, it will result in increase in the dependency level of the company on other countries
related to acquisition of business resources, techniques and capital which will hamper the
productivity and performance level of the company at a large extent. It is better to use available
business resources and other requisite essential of its own economy for carrying on business
operations of production and manufacturing. For making profit, it is better to make use of
available business and financial resources in proper and effective manner by framing sound and
accurate business policies and strategies for attaining the set defined business goals as well as the
objectives in cost effective manner.
As per the views of Avdjie and et.al., (2018) the relation between the globalization and
taxation policy affect the pricing policy of company. It encourages company to create innovative
services and product in the market by providing effective tools and techniques to differentiate
their products from the other company. It increases the price of the product and services to get
the benefits of globalization. But the same time Aalbers, (2018) criticize that globalization
increase competition in the market which force the companies to reduce their prices to sustain
the market and retain the customer towards the company.

The above figure shows the relationship between gloablisation and coroporate taxation
policy and its impact on price and financial performance.
CHAPTER 3: RESEARCH METHODOLOGY
Introduction:
Research Methodology is one the most essential chapter of the research as it is the one of
the process of systematic and theoretical analysis of the methods which are applied to the field of
study to make business decisions (Kumar, 2019). In this present chapter, researcher has applied
effective research techniques to collet, analyse and interpret the data for generating effective
outcomes.
Research Methodology
Research methods are the techniques, tools, strategies or process used for the collection
of data for analysis to generate new information as well as develop good understanding of the
topic. Researcher has mainly three choices for conducting the research which are qualitative,
quantitative and mixed methods. The type of research technique that is used to planned the study
with the purpose of gaining deep understanding regarding the topic without any statistical and
numerical figures is said to be qualitative methods. Strength of this method is that it provides
advantage to investigator to study each and every aspect of a topic but also limits accuracy of the
investigation as it doesn’t have any support of statistical information and evidence.

Whereas, the research methods which study the research by considering the statistical and
mathematical techniques is called as quantitative methods (Fletcher, Massis and Nordqvist,
2016). This method has a strength which provides advantage to investigate large number of
numeric data effectively. Besides which, it also has a weakness which is, it limits researcher to
getting deep theoretical insight of the research topic.
When research is planned for collecting, analysing by considering both qualitative and
quantitative methods is said to be mixed methods. This method has strength which enable
investigator to get deep insights of a topic and also to get benefitted to support those insights
with numeric evidence. To gain these benefits researcher has applied mixed method by
considering both qualitative and quantitative as it will minimize the bias nature and aids in
giving positive outcomes. Mixed effect is much better as it will aid in evaluating the concern
issues effectually from both theoretical and numerical perspective. Unfortunately, this method
also has a weakness that it requires high analytical skills and evaluating knowledge.
Research Philosophy
Research Philosophies deals with the nature, knowledge and source and it is belief about
the ways in which data about the phenomenon must be collected, analysed and used. Research
Philosophies are essentially divided into two types which are positivism and Interpretivism
philosophy. The type of philosophy that is highly structured and allows large sample to study the
data is called positivism philosophy (Pankaj, Kumar and Kavitha, 2017). This philosophy is
advantageous as it helps in evaluating big numeric data using an appropriate structure. It also has
a weakness which is its inflexibility as all the aspects in an investigation cannot be calculated.
Whereas, the type of philosophy that allows small samples to study in depth is called as
Interpretivism philosophy. This research is beneficial in the cases of investigation which has
small sample size which even becomes its weakness as it doesn’t facilitate in investigating large
number of respondents.
Researcher has applied positivism philosophy as it is most suitable philosophy when
research is based on quantitative and positivism will also allow studying the large sample and it
is highly structured data. Researcher has been using positivism philosophy as it helps in defining
in depth knowledge about a particular phenomenon.

Research Approach
The procedure and plan that comprises the steps of wide assumption over defining the
detailed methods for data collection, its evaluation and interpretation. It is very important to
select the most appropriate research approach it is because after selecting the research methods
researcher have essentially looked for the research approach. Research approaches are essentially
divided into two methods which are inductive and deductive. Deductive approach is mainly
concern with the development of hypothesis which is based on existing concept and the
designing plan of action to trial the hypotheses (Alase, 2017). This approach has various
strengths which are; it helps in time saving, it can apply to variety of examples and it even can be
used for higher level of investigation. On the contrary, complexity is its disadvantage.
The type of approach that begins with the theories and observation proposed towards the
end of research process is called as inductive approach. This approach is good with theoretical
investigation but lacks where researcher requires experimentation. In this present research,
researcher has applied deductive research approach as this method has high possibility to explain
experimental relationship between concept and variables and possibility to measure the concept
of quantitatively. Researcher has made of deductive research approach as it helps in framing of
hypothesis which forms base for making decisions in respect of rejection or confirmation of the
test within the research process.
Research strategy – It is a step by step plan of conducting research in systematic way. It
includes research design and methods. Also, it gives an insight that how methodology will be
implemented. The use of strategy depends on aims and objective of research. Generally, there are
4 types of research strategies available that are case study, qualitative interview, quantitative
survey and action oriented research.
Case study strategy facilitates in investigating different pre reviewed case studies but lacks
in primary research of first hand data. Qualitative interview allows to conduct interviews with
few respondents about their opinion against asked questions. This strategy helps in getting deep
insights from respondents but it also limits the number of respondents as it is a time taking
activity. Third strategy is quantitative survey, in this multiple questions are asked from ample
number of respondents to get their opinion against research topic but its lacks in getting detailed
information from the respondents.

In present study, scholar will use case study and quantitative survey strategy. By this,
researcher will gather secondary data by analysing case studies and focus on survey to collect
quantitative data as well. The combination of these strategy will overcome each other’s
weaknesses.
Research choice
The research type includes two methods qualitative and quantitative. Both follows different
methods of conducting the research. For the present research project, a mixed approach has been
used in which both qualitative and quantitative method is used to carry out the research and to
investigate the impact of globalisation over the corporation taxation policy. This mixed approach
has reduced the bias nature and helped in giving positive outcome. Mixed effects are better
because this has assisted the researcher in analysing concerned issue effectually from both
numerically and theoretical perspective. The mixed research choice has been made to reduce
limitations of both quantitative and qualitative methods.
Time horizon
Research time horizon is the study which states whether the research will be done by using
fresh first hand data or will be done by using same data every time. There are two time horizons
in study that is longitudinal and cross-sectional. Longitudinal study investigates same data over
and over using same samples in order to analyse changes in those samples. This method is
beneficial for specific type of investigation where there is high scope of change in the opinion of
respondents. On the other hand, cross sectional study investigates different data in order to
analyse change at a societal level. This method has strength which helps in studying and compare
different population groups at a single point of time.
Here, cross-sectional study is taken which examine particular phenomenon. It is categorized
into two that is single and multiple cross-sectional study. In this only one sample will be studied
in particular time.
Data Collection
Data Collection is another most important research methodology that researcher have to
look over after selection of sample. The process that is used to collect the data regarding the
subject area is called as data collection. Data Collection is essentially divided into two methods
which are primary and secondary. First hand data is called as primary data and it is collected by
the research own efforts as well as it also relies on fresh information. This type of data collection

technique has a strength that it serves specific agenda of the investigation. It also has a
disadvantage that it is a time taking task and investigator has to incur high cost. On the flip side,
the data which is collected by any other sources such as government publications, books, articles,
journals etc. are called as secondary data and it is basically based on past information.
Researcher in this present research has applied both methods for data collection (Paradis and
et.al.,2016). Secondary data can easily be collected by using books and articles which becomes
its strength but it lacks in fulfilling specific objective of the investigation. Primary methods are
applied in this research by conducting survey via questionnaire by 25 participants and rest of 5
were taken as interview. In addition to this, secondary information is also collected via books
and journals and articles in the form of literature review.
Sampling
Sampling is a procedure of selecting a number of observations which are pre-determined
from a large number of observations. Without sampling it is not possible to collect the data and
evaluate the outcomes. Probabilistic and Non-Probabilistic are two types of sampling techniques
which are applied in the research. Probabilistic Sampling techniques are those where researcher
have equal chances of being selected in the sample. This technique is cost effective and less time
consuming but it has a limitation of getting same class of respondents as well; which sometimes
fails to fulfil aim of investigation. On the flip side, the type of research techniques where
researcher do not stand equally to be selected in the sample is called as non-probabilistic
sampling (Lohr, 2019). This technique can even be used with small number of population but
lacks in calculating confidence intervals and margins of errors. In this present research,
researcher has taken 30 participants of British Airways through random sampling. Investigator
has selected employees and all have equal chances of being selected. Employees are the correct
sample that enable to answer the impact of globalisation as well as identify, explain the relation
between globalisation and taxation.
Data Analysis
Data Analysis is next stage after data collection as without the analysis of data the
information collected is said to be raw in form. The data collected needs to be transform,
moulded and filter to make it meaningful. Data Analysis is essentially divided in two parts which
are Qualitative and Quantitative. Quantitative data are those where data can be analysed through
different techniques and methods such as SPSS, thematic test etc. This includes thematic as well

as use of tools such as SPSS (Mitzenmacher and Upfal, 2017). For the present report data will be
analysed by use of Ms Excel sheets, data analysis techniques and coding. The purpose of using
this method is that quantitative analysis is free from bias and personal interest.
Researcher has made of SPPS tool, excel function for making proper analysis as well as
interpretation of data gathered as it will help the researcher in providing better understanding
about the data with the help of different types of graphs, charts, excels, tables etc.
Research ethics
The research ethics governs the standard of the conduct of the researcher. Ethics makes
difference in what is right and what is wrong. This is important to minimise the risk of harm,
obtaining the informed consent and protecting the confidentiality. All this have duly taken care
with while taking the information from all 30 respondents and consent are all informed. No
forceful participations were there in the study and all information are collected from valid
sources. All the ethical norms and standards has been compliance with in respect of research
study and no data has been copied and paste as it directly from the websites and also not use
without rephrasing it.
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
Questionnaire
1. How many are male and female?
Male 18
Female 12
Survey questionnaire
1. Do you all aware with the concept of globalization?
Yes
No
2. Is there any impact of globalization upon the taxation policy of British Airways?
Yes
No
Don't know
3. Do you agree with the statement that globalization and corporate taxation affect the

financial performance of the company?
Strongly agreed
Agreed
Disagreed
Strongly disagreed
4 Is government forces company to lower down the tax rate?
Yes
No
5. Is globalization and taxation policy creates any impact upon pricing?
Yes
No
Interview questionnaire
1.Does the company follow all the rules and regulation related to taxation policy made by
government?
2. What is the most affecting implication do you that will affect the British Airways while
implementing taxation policy?
 Government rules
 Customer point of view
 International taxation policies
3. Which of the following leads to increase the taxation policy in company?
 Low economic status of country
 High demand of the customers
 Relies on heavy personal income taxes

Theme 1: Majority of the respondents are male
How many are male and female? Respondents
Male 18
Female 12
Interpretation: from the above graph, it has been interpreted that out of 30 respondents,
18 are male while 12 are female respondents. Therefore, it has been observed that they all stated
the answer in better way and also helps to meet the aim.
Survey questionnaire interpretation
Statistics
18
12
Male
Female

Do you all
aware with the
concept of
globalization?
Is there any
impact of
globalization
upon the
taxation policy
of British
Airways
Do you agree
with the
statement that
globalization
and corporate
taxation affect
the financial
performance of
the company
Is government
forces
company to
lower down
the tax rate
Is
globalizati
on and
taxation
policy
creates
any
impact
upon
pricing
N Valid 30 30 30 30 30
Missing 0 0 0 0 0
Mean 1.17 1.17 2.00 1.17 1.17
Median 1.00 1.00 2.00 1.00 1.00
Mode 1 1 2 1 1
Std. Deviation .379 .379 .587 .379 .379
Minimum 1 1 1 1 1
Maximum 2 2 4 2 2
Theme 1: Majority of the respondents are aware with the concept
Do you all aware with the concept of globalization?
Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 25 83.3 83.3 83.3
No 5 16.7 16.7 100.0
Total 30 100.0 100.0

Interpretation: From the above, it has been interpreted that out of 30 respondents, majority of
them state that they all are aware with the concept of globalization, such that 25 of them are in
favour while only 5 of them state that the company did not know about the concept.
Theme 2: Majority of them are state that there is an impact of globalization upon the
taxation policy
Is there any impact of globalization upon the taxation policy of British Airways
Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 25 83.3 83.3 83.3
No 5 16.7 16.7 100.0
Total 30 100.0 100.0

Interpretation: From the above graph, it has been interpreted that globalization creates
impact upon the taxation policy of the British Airways such that out of 30 respondents 25 of
them state that it creates impact while only 5 of them state that it did not create any impact.
Therefore, it has been analysed that while dealing at global level, the company must follow the
taxation rules made by the government.
Theme 3: Majority of the respondents are in favour that globalization and corporate
taxation affect the financial performance of the company
Do you agree with the statement that globalization and corporate taxation affect the financial
performance of the company
Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly agreed 4 13.3 13.3 13.3
Agreed 23 76.7 76.7 90.0

Disgreed 2 6.7 6.7 96.7
Strongly Disagreed 1 3.3 3.3 100.0
Total 30 100.0 100.0
Interpretation: From the above interpretation, majority of them are agreed that the
globalization and corporate taxation affect the financial performance of the company such that
23 of them are agreed that it creates direct impact upon the financial performance while only 2 of
them are disagreed with this. On the other side, 4 out of 30 are strongly agreed with the concept
and this clearly reflect that the business affect financially from the taxation policies.
Theme 4: Government forces company to lower down the tax rate
Is government forces company to lower down the tax rate

Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 25 83.3 83.3 83.3
No 5 16.7 16.7 100.0
Total 30 100.0 100.0
Interpretation: Majority of the respondents are in favour that government forces company to
lower down the tax rate so that it will help to increase the demand of customer. Such that out of
30 respondents, 25 of them are in favour while only 5 of them said no that government did not
force company to lower down the tax rate.
Theme 5: Yes, globalization and taxation policy creates any impact upon pricing
Is globalization and taxation policy creates any impact upon pricing

Frequency Percent Valid Percent Cumulative
Percent
Valid
yes 25 83.3 83.3 83.3
No 5 16.7 16.7 100.0
Total 30 100.0 100.0
Interpretation: As per above, it is analysed that both globalisation and taxation policy
are interrelated with each other such that it creates direct impact upon the pricing policy such that
out of 30 respondents, 25 of them are in favour that it creates impact upon British Airways
pricing while only 5 of them state that it did not affect the pricing of the company.
Interview questionnaire Interpretation:
Theme 1: Company follows the rules and regulation

Interpretation: As per the interview question, out of 5 respondents 3 state that yes,
British Airways follows all the rules and regulation related to taxation policies and that is why, it
has the brand recognition. On the other side, 1 of them state that no the company did not follow
any rules and regulation related to taxation policy. While on the other side, 1 of them did not
know about this. Therefore, it has been interpreted that British Airways follows the rules and
regulations and that is why, the company bring its brand recognition in the global market.
Theme 2: affecting implication for British Airways
Interpretation: as per the question, it has been interpreted that majority of them state
that government rules and regulation affect the British Airways while implementing the taxation
policy. Therefore, out of 5 respondents, 3 state that government rules are affecting the most,
while 1 of them stated that customer point of view is consider the most affecting implication and
only 1 of them state that sudden change in the international taxation policy affect the business in
negative way. Therefore, it is analysed that change in government rules and regulation affect the
business working in negative way.
Theme 3: Increase in tax rate
Interpretation: British Airways deal with the global level and there are many reason of lead
the taxation policy of the company such that out of 5 respondents, 4 of them state that due to low
financial performance of the company, the taxation policy affected and on the other side in order
to decrease the demand of the products government also increase the tax rate so that it will
directly increase the cost of the company. On the other side, 1 of them state that due to high
demand of customers the tax rate is increases. Hence, these are the main reason of increase the
taxation policy.

CHAPTER 5: CONCLUSION
From the above report it can be concluded that globalisation has played one of the most
important role in making companies capable of performing at the global level. Because of
globalisation most of the business organisation are undertaking their business operations at the
international scale thereby improving their overall business performance level. Also, it has
evaluated from the research project that it has become impossible for most of the companies in
charging high rate of tax from the customers across the globe. By charging high rate of tax, it
will result in out flow of both the human as well as capital resources of the company as well as of
the economy too.
Globalization and corporate taxation policy are both the interrelated terms as both creates
significant impact on the working as well as operations aspects of the business organization as
taking place at the international level (Tsukada, 2017). This interrelationship between
globalisation and corporate taxation policy thus results in creating impact on the financial
performance of the British Airways. The financial performance of the company thus gets
improved with the help of globalisation as it has made the economy more interacting. Also, it
has provided ease and assistance to many consumers and business firms in respect of freedom of
selection of business, human, capital resources and technological factors at low price across the
world market.
Also, it has created impact on the pricing strategies as used by the British Airways in
conducting its business operations at the global level. Now many business firms can make
improvement in its pricing policies thereby reducing unnecessary cost expenses as associated
with their unproductive business departments. By acquiring better and effective business
resources such as technological factors, capital resources, human etc. at minimal rate it can
charge effective prices for its own business products and services.
As per the data analysed, it can be interpreted that out of 30 respondents, 18 are male
while 12 are female respondents who have taken part in assisting the data collection process.
Also, majority of the respondents are having awareness about the concept of globalization and its
related impact on the corporate taxation policy. Furthermore, it has been analysed that for
dealing at the global level, it is required on the part of British Airways to make compliance and

must follow all the taxation rules and regulation as defined by the government from the
perspective of quality as well as safety norms of the consumers seeking their services.
According to the Interview conducted it has been assessed that out of 5 respondents 3 has
stated that British Airways always follows all the rules and regulations as applicable and related
to all the taxation policies thus making it as brand recognition. Furthermore, it has been
evaluated that there are some of the government rules and regulations which has created negative
effects on the business operations as well as performance level of the British Airways after
implementing of the taxation policy. Also, it has been analysed from the research study that due
to low financial performance of the company, the taxation policy of the British Airways gets
affected. On the flip side in order to decrease the demand of the products, the government has
increases the rate of tax thus resulting in increase in the overall cost of the company.
RECOMMENDATIONS
From the perspective of recommendations, it is highly recommended to the company:
1. It is recommended to the company to formulate sound business plans and strategies in
line with the business aims and objectives so as to capture market share at large basis.
2. Also, before entering market at the global level it is very much important to understand
the current as well as recent market trends prevailing therein so that the company can
make plans accordingly (Basu, 2016). Also, it will help British Airways in understanding
the customer demands.
3. Furthermore, by assessing the standards and norms followed by the profit making
companies in the market place, British Airways can also make improvement in its own
employees as well as business performance level. This will help the company in making
improvement in its overall operational efficiency as well thus assisting in increasing their
profitability as well as production level.

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