If you want to believe that a Multinational is here to cop a loss year after year, then obviously you haven't worked in management high enough up the tree to have access to the 'unengineered" balance sheets.
From my many years of experience I can tell you that a Multinational's CEO/MD who realised one year of real loss in Aus. would have to account for that to his/her overseas superiors and if he/she did not have a credible business plan for the following year to at least erase the red ink , then they were given the golden handshake.
In a globalised world ,Multinationals here employ one of the Big 4 Multinational Accountancy Firms to financially "engineer" balance sheets so that: (a) products and services are generated in the lowest input cost jurisdiction (b) that products and services are sold in the highest value jurisdiction (c) that profit is realised in the lowest tax jurisdiction ; preferably a tax haven or a conduit to a tax haven.
In summary: maximise profit & minimise tax.
Why do you think that Singapore, Republic of Ireland , Holland, Switzerland etc have so many of the Multinationals marketing hubs?
