OFFSHORE FINANCIAL CENTERS

•AREAS SPECIALLY DESIGNED TO PROMOTE BUSINESS TRANSACTIONS &

CENTERS FOR BANKING & FINANCE

CIRCULATION OF CAPITAL

•WHAT ADVANTAGES EXIST FOR THIS RELOCATED SERVICE?

• NAME SOME LOCATIONS THAT CONDUCT INTERNATIONAL BUSINESS

• EX. PANAMA, LUXEMBOURG, SWITZERLAND, SINGAPORE, BAHAMAS, KUWAIT, & CAYMAN ISLANDS

IN LDCs

What type of service?

________________

OFFSHORE FINANCIAL CENTERS

Where are the larger concentrations of clustering? _____________________

- Why are they found there? ________________________

THESE INVESTMENTS RUN MUCH OF BLOOMBERG’S FOUNDATION THROUGH LEGAL OFFSHORE

CORPORATIONS FOR THE PURPOSES OF TAX EVASION. $300 MILLION IS INVESTED IN FOREIGN

COMPANIES, WHICH THEN INVESTS THE MONEY IN HEDGE FUNDS. THE MONEY IS EVENTUALLY

RETURNED TO THE FOUNDATION, UNTAXED.

BACK OFFICE

• CALL CENTERS FOR RESPONDING TO QUESTIONS

• FOUND IN LDCS = _____________ COUNTRIES

• TASKS:

• TELECOMMUNICATIONS

• PROCESS INSURANCE CLAIMS

• PAYROLL MANAGEMENT

• TRANSCRIPTION WORK

• ROUTINE CLERICAL ACTIVITIES

• CALL CENTERS -RESPONDING TO BILLS/ TECHNICAL INQUIRIES / SHIPMENTS

What type of service? ___________________

WHY WERE THESE 2 BUSINESS SERVICES OUTSOURCED?

• SAVE $ WITH LABOR

• OTHER ADVANTAGES

• WHY ARE THEY NOW ABLE TO BE LOCATED IN LDCS?

• COMPUTER & COMMUNICATION TECHNOLOGY ACCESSIBILITY

• GLOBAL LANGUAGE AIDES COMMUNICATION OUTSIDE BORDERS

• ABILITY TO SPEAK ENGLISH

• CALL-CENTERS EDUCATED ON PRONUNCIATION IN “TYPICAL” BRITISH OR AMERICAN ENGLISH

VIDEO= CALL CENTER