International Competition and Fiscal Differentiations under Democratic Conditions

Abstract In the relationships between nations invasions of foreign countries are becoming less relevant. Under US President Bush Iraq has been invaded, but already his successor Obama, assumed that sheer invading of countries nowadays appeared as something obsolescent, as it is opposed to the modern sentiment of democracy, spreading, either with nations or individuals. In the crisis-areas witnessed nowadays in Eastern Europe and in the Middle East the US tries still to solve the occurring problems, but doesn’t want to deploy ground troops, to overshadow with local population, which would create the suspect of invasion, a break with the general democratic feeling. It is not sure if this concept is going always to work in practical terms, but the intention is clear: it is preferable for crises to be solved by the domestic population, with foreign mixing as less as possible. Such an attitude changes many things in the realm of international competition, which is therefore more and more shifted to the economic realm. Democratic view-points emerge also if we stare at the huge migrant flows, which are trying to abandon poor and badly administered countries, like some in the Middle East or the South of the World, heading to those with better economic standing, which stays in the center of ruler's preoccupations, like in Western Europe, or in the US, places those, where the Central Bank CEO is becoming almost more important than politicians. In such countries, an important issue is the fiscal standing, depending on the presence of Regional Groupings like the EZ (EUROZONE), offering the advantage of large markets and a common currency, a situation which in the US was realized already some hundreds years ago. But there are advantages and disadvantages of this new situation: the main disadvantage is emerging in the fiscal area. For a given nation, the membership in the EZ brings, for instance, to a loss of economic independence, as it has to stick to the rules imposed by the Grouping affiliation. In such a situation paramount becomes the importance of developing and growing enterprises. The advantage of the economic environment offered by EU (EUROPEAN UNION), EZ, or US for single enterprises is given by the wide market space offered to its striving and developing efforts, assessing its potential of growth. In the article the fiscal situation of various nations is studied and examples of companies are made, looking of confirmation for the theses expressed. Easy explanations for company success often defy common wisdom. The catchword “innovation” is nowadays very much preferred, but not all of the examples proposed are based principally on it. Some of the reasons for company success remain hidden to common rationality and are based on a mix of individual creativity, invention, application, genius, organization and planning