course hero why do u.s. firms use places like the bahamas as offshore financial centers?

by Adaline Rice 10 min read

The question begs, why do firms use places like the Bahamas as offshore financial centres? The answer is simple. These offshore financial centres benefit from allowing corporations to run business on their land in secrecy, and catering to prosperous business owners.

Full Answer

Why do US companies build facilities in other countries?

U.S. firms build facilities in other countries because of “lower labor cost and it helps companies reach a brand-new market where demand is high and competition is minimal (Joseph 2016).”.

Why do foreign companies build facilities in the US?

Foreign companies build facilities in the U.S. because many products such as cars and clothes are made by foreign countries. To move the market closer to where the product will have a major increase in revenue and it allows the product to be available quicker (supplier to consumer).

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