Write a description on how you expect globalization to affect an accounting care

Question

Write a description on how you expect globalization to affect an accounting career and your investment strategy. Some questions to consider include but are not limited to:

Will you invest your 401K (or other savings plan) in foreign stocks or bonds? Can your job be easily outsourced to another country? Can you benefit from globalization by being able to export your skill? What is the effect of immigration on your career? How does immigration affect the level of wages in your career field? Which is more likely to affect your career, globalization or changes in technology?

Each student will discuss the importance and impact of incorporating international financial concepts into the financial planning process. Some critical questions to address would include (but not be limited to) the following: What would be the impact on portfolio risk and return of incorporating an international component in the asset allocation decision? How will exchange rates impact the overall risk of the portfolio? What potential impact could international political risk play in the overall personal financial planning process?

Explanation / Answer

Following are the affects of globalization:

Learning the taxation of different countries

While in the past, accounting students could reasonably assume that they would only need to be familiar with the tax code of the country in which they planned to work, today’s accounting students are grappling with the reality of a world that has significantly lower boundaries between the economies of different countries. With that shift toward a broader geographic footprint for the economy, there is also a broadening of the taxation systems that account students must become familiar with in order to be competitive and competent in their field.

Outsourcing elements of accounting

One of the other primary changes that is taking place with the increasing globalization of the world is that certain portions of the account profession are getting outsources to areas in which labor is less expensive. While outsourcing is hardly a novel concept, the idea of parsing out certain elements of the accounting profession and moving them overseas and across borders is certainly a newer change to the role. While accounting has always been viewed as a field that involved a significant amount of “number crunching” and a dexterity with math is touted as a prerequisite, modern accounting roles are shifting some of the more tedious elements to overseas partners or automated programs.

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