4.4.1 - Definitions
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Last updated 10:39 AM on 3/20/25
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4 Terms
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Profit leakage
When a business transfers the profits they make in the host nation back to the home nation
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Balance of payments
The difference in a country’s imports and exports over a particular period of time. A good balance of payments would minimise import growth and maximise export growth to achieve a trade surplus
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Tax haven
A country where taxes are levied at a low rate
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Transfer pricing
The practise of shifting profits from the host nation to a tax haven to minimise the money spent on taxes
Note 
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