Global Logistics and Risk Management Essay Example

Global Logistics and Risk Management Essay Example Global Logistics and Risk Management Essay Global Logistics and Risk Management Essay EXECUTIVE SUMMARY GLOBAL LOGISTICS AND RISK MANAGEMENT Global supply chain enables companies to expand beyond their domestic markets and expand globally . International supply chain could be viewed as an extension of the domestic supply chain if managed well . There are several forces which determines the success of international supply chain. Global market forces involves pressures and opportunities created by the foreign companies and customers . Overseas business sometimes is a defensive mechanism to defend domestic markets . Another reason for expansion is because of the increased opportunities in emerging markets and the facilities provided by information technology and internet. Regional expertise in technology is another reason why firms look for overseas locations for production and research. This helps firms to improve the production facilities and use the best technology available across the world for better and effective production cycles. Cheap labor and lower costs could be a valid reason for global manufacturing locations . But the manufacturing supply chain in this case should be well integrated to avoid other operating costs which might increase due to remote locations . Political and economic factors like trade agreements, tariff rates, export restrictions and inflation,could positively or negatively affect the efficiency of global supply chain. Supply Chain Risk refers to an uncertainty or unpredictable event affecting one or more of the parties within the supply chain or its business setting, which can (negatively) influence the achievement of the business objectives. : Unpredictable and unquantifiable risks are known as unknown-unknown . where as quantifiable risks are known as known-unknown. To manage the unknown –unknown risks a required level of redundancy needs to built in the supply chain . This can be one through careful analysis of supply chain cost trade-offs. Sensing and responding quickly can also help the firm overcome unexpected supply chain problems . Adaptability is another key factor in managing this type of risks . Adaptive supply chain would require supply chain partners that morph and reorganize better react to sudden crisis situations. Global risks in supply chain could be managed through speculative strategies . This works when a company works on a speculative scenario and if that scenario is realized . Otherwise the results could be dismal. Another strategy which is known as hedge strategy. In this strategy a company designs the supply chain in such a way that any losses in part of the supply chain will be offset by gains in another part . Flexible strategies enable a company to take advantage of different scenarios . Flexible factories and suppliers which enables production shifting is very important . Market information sharing is another important aspect of flexible strategy. Global coordination and political leverage are other important factors which would contribute to the success of flexible strategies. A global strategy implementation would require five basic functional developments . Product development is the designing of products which can be modified for various markets . An international design team could be used for this . There should be a separate management team handling the purchase of important materials from vendors across the world . This way the quality and delivery options from various suppliers can be checked and ensured. Excess capacity and plants in several regions are essential to take full advantage of global supply chain by shifting production based on conditions . Centralized management and effective communication systems are essential for this system . This accounts to production development. Demand management should be based on regional basis in this system . A centralized system must be in place so that regional customers can receive deliveries from the global supply chain. There are several issues with international supply chain management . The main issue is with the international and regional products . Some products can be universally designed but some other products has to be designed based on the regional preferences . Another issue is the differences in terms of centralized control and local autonomy . Managers sometimes tend t overlook the learning from the global supply chain to use the local learning of supply chain . Other issues could be related to the socio economic reasons like inflation could be a major risk , if not managed well. Foreign government norms could be another potential threat to global supply chain. The main regional difference I global supply chain would be the cultural differences . Differences is languages ,beliefs and customs followed locally . Another aspect is the availability of infrastructure indifferent countries . The highway systems ,ports ,communication ,information and advanced manufacturing and ware housing technologies allow the development of advanced supply chain . Logistics infrastructure in many emerging markets are not fully in place due to the lack of adequate investments in this area . The logistics infrastructure and the other infrastructure in the third world nations is not always adequate enough to support the advanced global supply chain systems . Another area of difference is the difference in the operating levels and the performance evaluation and expectation . The operating standards of the developed world typically vary greatly . Some firms might have met high expectations and place great value on contracts and agreements Research and negotiations are essential to successful deal making in the emerging nations . And government also plays a large role in the business in these countries . In third world nations the traditional performance measures have no meaning . shortages are quite frequent and the service levels practiced in the west are not met in these places thus a firm has very little control over the timing and the availability of the inventory Another major concern is the availability of the information systems . Quick and prompt information sharing is very important for the success global supply chain . Support systems and the communication networks available in the emerging markets efficient information flow. Availability of technically and managerially competent workers is another problem faced by most of the global supply chain systems . The regional ,political and religious influences in man power selection mostly denies the opportunity to hire the best talent available for the success of global supply chain. In spite of all the regional, political and other differences, global supply chain is here to stay and grow. As the markets are getting saturated companies across the world has to grow beyond their domestic markets . So the relevance and importance of global supply chain is even more pronounced in today’s world IBS BANGALORE Muhammed Haneef 07BS0062

States With No Income Tax Should You Move to One

States With No Income Tax Should You Move to One SAT / ACT Prep Online Guides and Tips While everyone in the US pays a federal income tax, not everyone pays a state income tax. There are seven states in the US with no income tax whatsoever, plus two more that don’t tax wages. While people who live in these states don’t pay income tax, they may pay higher taxes in other ways, like when they go shopping or stop at the gas station. This guide will explore whether or not people in income tax-free states save money overall, along with the pros and cons of moving to one of these states. First, let’s look at the nine states with few or no taxes on income. What Are the States With No Income Tax? There are seven states with no income taxes whatsoever. They are the following: Alaska Florida Nevada South Dakota Texas Washington Wyoming Two other states, New Hampshire and Tennessee, don’t have an income tax on wages, but they do tax interest and dividend income. If you’re making money from investments, for instance, then that profit would be taxed in New Hampshire or Tennessee. The remaining 41 states do level a tax on income. Some have a flat-rate income tax, while others have different brackets based on how much money you make. These states gain revenue from income taxes, and that money goes into various services and programs. In states that don’t collect income tax, where does the revenue come from? There are nine states in the U.S. with no or few state income taxes. Lokal Profil/Wikimedia Where Do States With No Income Tax Get Revenue? States still need revenue, and they get that money from a variety of sources. Commonly, states without income tax have higher sales, gas, and property taxes. They may also provide fewer, more expensive, or lower quality public services. For instance, in-state tuition at the public universities in New Hampshire is higher than that of most other states. Let’s look on a state-by-state basis to see how these no-income-tax states collect revenue. Alaska: petroleum revenue. Because of its oil, Alaska is an exception among income tax-free states. Rather than raising other taxes, Alaska actually distributes a dividend check to residents. Last year, each resident’s share was $2,075. Florida: above average sales taxes and property taxes. Nevada: gambling-related fees and taxes, as well as sales taxes. South Dakota: personal taxes, property taxes, cigarette excises, bank franchises, and ore taxes. Texas: oil and gas royalties, as well as a high sales tax. Washington: some of the highest sales and gasoline taxes in the United States. Wyoming: coal mining and property taxes. Like Alaska, Wyoming also gets revenue from its natural resources. New Hampshire: property tax. Tennessee: highest sales tax in the US. Given these alternative forms of revenue collection, does living in a state without income tax mean you keep more of your paycheck? Alaskan residents actually get money back each year from the Alaska Permanent Fund. Living in Alaska can be expensive, though, as it’s a pretty remote place. Does Living in an Income Tax-Free State Mean You Keep More of Your Money? The short answer to this question is, not necessarily. As you can see above, many states without income tax charge higher taxes on day-to-day expenses. They may also provide fewer public services or more expensive higher education. Depending on your spending habits and lifestyle, the amount of money you’re paying toward other taxes could be higher than the amount you would pay toward taxes overall in a state that had an income tax. How much you benefit from an income tax-free policy also largely depends on your income level. Typically, people with a higher income benefit from the lack of income tax, while people with lower incomes end up paying a larger percentage of their salary to other kinds of taxes. According to the Institute on Taxation and Economic Policy in Washington, for example, the poorest 20% of state residents pay 16.9% of their annual income in sales and gas taxes, while the wealthiest 1% pay just 2.4% of their income. Your income level, therefore, becomes an important factor if you’re deciding whether or not to move to a state with no income tax. What else should you consider as you figure out where to live in the United States? Should you move to sunny Florida, where palm trees are a-plenty but state income tax is nowhere to be found? Who Should Move to an Income Tax-Free State? As you read above, income tax-free states tend to have higher sales, gas, and property taxes and a reduced budget for public programs, like education. If any of the following are true for you, then you might benefit from living in one of these states. If the opposite is true, then you probably shouldn’t move to one. You Have a High Income Higher-income people tend to benefit the most from living in an income tax-free state. Besides keeping a larger proportion of your wages, higher income people may also have less need for public services. For instance, higher-income people may not rely on public education, instead sending their kids to private schools. You Don’t Own Much Property If you don’t own a lot of property, then you won’t get hit too hard with the often high property taxes in income tax-free states. If you do own a lot of property, then living in one of the nine states discussed above probably wouldn’t work in your favor. If you own a lot of land or houses, then you may end up getting hit with high property taxes. You Don’t Spend a Lot Besides having higher property taxes, most of these nine states impose high sales taxes. If you have a high consumption lifestyle, then you’ll be putting a higher than average percentage of your income toward sales taxes. If you don’t spend a lot, then you may save money in one of these states overall. You Don’t Rely on Public Services States without income taxes may offer reduced or lower quality public services, like transportation, health care, or public education. If you don’t have kids or are sending your kids to private school, then this might not affect you. Washington, by the way, is an exception with its strong public school system, but it has some of the highest sales and gas taxes in the country. If you drive a lot in Washington, then you might end up paying a lot in gas tax and highway and bridge tolls. If you’re sending kids to public school, be careful about the quality of the education system in an income tax-free state. You Hold Conservative or Libertarian Views People have different opinions about state income tax, and their support of or opposition to it tends to coincide with their social and political views. People with progressive or liberal views tend to support government funding of public services, like education, health insurance, and transportation, and they tend to be in favor of income taxes, as well. Those with more conservative or libertarian views want to minimize the government’s role in shaping society and consequently, tend to be opposed to income taxes. They may oppose any kind of income redistribution and prefer that all people pay the same on other taxes, like sales taxes. Progressives, however, point out that sales taxes affect people at different incomes disproportionately, with lower income populations becoming the most burdened. People also disagree about whether income taxes help or hinder job and population growth. Those who oppose income tax say that doing away with it boosts jobs and helps the state retain young people. According to a 2013 study, though, Texas was the only non-income tax state where job growth didn’t lag behind population growth. If you find yourself agreeing with the typically conservative or libertarian point of view opposed to state income tax, then you may well enjoy living one of the nine states listed above. Are you a progressive, conservative, or libertarian? Whether or not you support state income taxes tends to align with your social and political views. You’ve Done Your Research Beyond figuring out whether living in an income tax free state would be financially beneficial for you, you should also base your decision on a number of other factors, like the state’s culture and weather and what your moving process would be like. Are you ready to move to Nevada’s desert climate and live close to the temptation of gambling? Does the libertarian bent of many Texans appeal to you? Are you comfortable living in a remote place like Alaska where the sun shines all summer and hides all winter? Any move calls for a good deal of research and planning. If your main motivation is doing away with income tax, then remember that there are other factors to consider, like state services and how the government’s alternative methods of revenue collection affect you as an individual or family. If you do decide to pack up and move to the desert of Nevada or a ranch out in the Lone Star state, what steps do you need to take? Besides bringing lots of water, what steps would you need to take to move to a state with no income tax, like Nevada? How to Move to a State With No Income Tax In order to move and start enjoying an income tax-free life, you’ll typically need to establish both state residency and domicile. Residency and domicile laws vary by state. Typically, you’ll need to spend a certain amount of time in the state, as well as change some records to reflect your new address. One common law states that you can’t spend more than 183 days in any single state beside your new state of residency. That’s not to say you have to spend the remaining 182 days in your new state of residency. For instance, let’s say you’re moving to Texas. You spend 100 days in Texas, 100 days in Massachusetts, and 165 days in California. Since you didn’t spend a collective 183 days in a single state other than Texas, you can still call Texas your state of residency. However, if you had spent 100 days in Texas and the remaining 265 days in California, then you can’t call Texas your state of residency. Again, your time in one other state can’t exceed 183 days. While establishing residency is pretty straightforward, establishing domicile is a bit more vague. Generally, domicile means that your community connections need to be stronger in your new state than your old state. These connections include things like your voter registration, driver’s license, and bank accounts. You also have to indicate that the new state will be your permanent home. Since residency and domicile requirements vary by state, you’ll have to check the exact specifications for Texas, Wyoming, and the rest of the states with no income taxes. Besides rooting out the exact residency laws, make sure to remember these key points about states with no income taxes and how to move to one. One perk of living in a state with no income tax- you can totally skip that page on your tax returns. States With No Income Tax: Final Thoughts While eliminating an income tax might sound like it saves you money, the policy is a little trickier than it sounds. States still need money, so getting rid of an income tax typically means that they impose higher taxes in other areas. The only exception is states that generate revenue from natural resources, like Alaska with its petroleum. Whether living in a state with no income tax will save you money varies by individual. Typically, people who have a high income will benefit, as well as those who don’t rely on public education, drive very much, own a lot of property, or spend much money overall. You’ll have to take a look at your income, lifestyle, and spending habits to determine whether moving would be financially beneficial for you. Because of the U.S.’s unique mix of state and federal laws, you should always look into tax laws when you’re considering moving. If you’re envisioning relocating to another part of the country, then consider the new state’s tax laws and how they’ll affect your personal finances.