Transnational corporations possess geographical flexibility, allowing headquarters to be located in countries that provide the most business-friendly tax structure. The arrival of an arm of a transnational corporation can bring jobs to developing nations and other economically depressed parts of the world, but those jobs often come with a price . The proper way to respond to transnational corporations is to prohibit them from taking advantage of consumers in developed nations with price gouging and from taking advantage of captive labor markets in developing nations . Also, if …show more content…
The effect of this inversion would have been to give Pfizer access to almost $150 billion in profits, which it would make in foreign countries but cannot use in the United States without absorbing a big tax bill. Americans for Tax Fairness estimate that Pfizer would have to pay around $35 billion on that income if Pfizer had brought it back to the United States . Eventually, Obama Administration ended the merger between Pfizer and Allergan, but one of the statements about opposing this came from the campaign of U.S presidential candidate, senator Bernie Sanders. Sanders said, “Large multi-national corporations should not be able to avoid paying U.S. taxes when children in America go hungry. We must demand that these profitable corporations pay their fair share in