Governments of many countries enact policies that can have a major impact on international trade flows. a.
Question:
a. Explain how governments might give their local firms a competitive advantage in the international trade arena.
b. Why might different tax laws on corporate income across countries allow firms from some countries to have a competitive advantage in the international trade arena?
c. If a country imposes lower corporate income tax rates, does that provide an unfair advantage?
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a Some governments offer subsidies to their domestic ...View the full answer
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