How does physical asset valuation pose risk to international business

In the area of taxation

Explanation:

Note that every country has its unique tax laws. And one of the factors often considered in company tax is their physical asset valuation.

The physical asset valuation method used in country A may not be acceptable in country B because of differences in tax laws. Thus, the value of the total physical assets may incur a higher tax in countries like the United States than in other countries like China.