The global supply chain for Michael Kors and impact

An article in the New York Times (Dec 20, 2011) describes Michael Kors Holding, an apparel company that generates 95 % of its revenues in the US and Canada, makes its apparel in Asia, and is incorporated in the British Virgin Islands. The result significant tax savings – estimated across all US multinationals to generate $ 1.375 trillion in cash overseas. Should this global supply chain be celebrated as effective management or a deceptive unfair outcome ? Should companies be mandated to pay a sales tax collected on their revenues (by the Federal government) rather than permit incorporation to decide tax consequences – and what would be the associated impact ? Would you expect changes in the income tax collection regime (through restrictions on global supply chains) to increase prices for US consumers ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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