Subsidiaries
in sentence
148 examples of Subsidiaries in a sentence
The shrinking domestic share of their total employment – a share that also fell by four percentage points in the 1990’s – has fueled concerns that they have been relocating jobs to their foreign
subsidiaries.
From 1999 to 2009, US multinationals in manufacturing cut their US employment by 2.1 million, or 23.5%, but increased employment in their foreign
subsidiaries
by only 230,000 (5.3%) – not nearly enough to explain the much larger decline in their US employment.
So, while US multinationals may not have been shifting jobs to their foreign subsidiaries, they, like other US companies, were probably outsourcing more of their production to foreign contractors in which they held no equity stake.
From 1999 to 2009, employment in US multinationals’ foreign
subsidiaries
increased by 2.8 million, or 36.2%.
Moreover, US multinationals in services increased their employment both at home and abroad – by almost 1.2 million workers in their domestic operations and more than twice as many in their foreign
subsidiaries.
Previous research has found that increases in employment in US multinationals’ foreign
subsidiaries
are positively correlated with increases in employment in their US operations: in other words, employment abroad complements employment at home, rather than substituting for it.
When multinationals create subsidiaries, those entities are considered to be legally independent firms.
A parent company can then set the prices of transactions between its
subsidiaries
to register its profits in low-tax countries, rather than where the original economic activity actually occurred.
He advocates stricter enforcement of the sum-caption rule for equity investment (barring top chaebol from investing more than 40% of net assets in group subsidiaries) and the cross-shareholding restriction rule (banning additional cross-shareholding of group
subsidiaries
for chaebolwhose assets total more than two billion Korean won).
After the devastating impact of the crisis on their economies, countries hosting Western banking
subsidiaries
and branches cannot be expected to accept the status quo .
But the rapid expansion of credit brought about by foreign financial intermediaries using various channels (including direct lending, lending via banking subsidiaries, and lending via leasing subsidiaries) has fueled asset booms and heightened exposure to foreign-exchange risk.
Despite skepticism regarding accommodation between Islamic and global finance, leading banks are buying Islamic bonds and forming
subsidiaries
specifically to conduct Islamic finance.
Chinese industry had been transformed into
subsidiaries
of government through nationalization and central planning.
Moreover, although the EU is supposed to have an integrated banking market, the few existing cross-border banking groups are not even allowed to operate as integrated international banks, because national regulators and supervisors are “ring-fencing” the liquidity and assets of foreign banks’ local
subsidiaries.
And, to add insult to injury, banks in advanced countries, especially those receiving aid from their governments, seem to be pulling back from lending in developing countries, including through branches and
subsidiaries.
The EU drew the right conclusions when it stressed that national bank rescue packages must not be designed in ways that starve subsidiaries, and also by doubling – to €50 billion – the crisis funds available to EU countries outside the euro zone.
Whereas smaller parties once functioned as mere
subsidiaries
of either the SPD or the CDU/CSU, the bit players are now eclipsing the former stars.
But, since the onset of the global financial crisis, eurozone-based banks’
subsidiaries
in emerging Europe have been reducing their exposure to the region.
Bank
subsidiaries
will increasingly have to finance local lending with local deposits and other local funding.
AIG is a holding company, and most of its business is conducted through insurance
subsidiaries
organized as separate legal entities.
Had the government placed AIG into Chapter 11 reorganization in November 2008, AIG’s creditors, including its derivative counterparties, would have ended up with the value of AIG’s assets, which consisted mainly of shares in AIG’s insurance
subsidiaries.
Without necessarily affecting the operations of AIG’s insurance subsidiaries, the reorganization process would have simply shifted ownership of AIG’s assets from AIG’s existing shareholders to AIG’s creditors.
The insurance
subsidiaries
were not responsible for the obligations of their parent company, and their claims toward policyholders were backed by required reserves.
Domestic
subsidiaries
of multinational firms or state-owned enterprises – which are repositories of skilled workers and managers – are also a source of such firms.
Some of these entities are very large and have multiple
subsidiaries.
Under Sechin’s leadership, Rosneft has become a state within a state, with a quarter-million employees, $65 billion in revenue, and 50
subsidiaries
at home and abroad – as many as Gazprom.
That tax is paid on profits earned in the US and on repatriated profits earned by US companies’ foreign
subsidiaries.
Not surprisingly, American firms prefer to leave those profits abroad, either in financial instruments or by investing in new or existing
subsidiaries.
All other OECD countries treat the profits of their companies’ foreign
subsidiaries
very differently, relying on the so-called “territorial” method of taxing foreign earnings.
And when a foreign firm acquires a US company, it pays US tax on the profits earned in the US but not on the profits earned by that firm’s other foreign subsidiaries, thus lowering its total tax bill.
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