Th4.5: ^^ FDI Flows Flashcards
1
Q
Low taxes on profit and investment tend to…
A
encourage business to invest in a country since it will help them to see a higher level of return
2
Q
What is the problem with this?
A
it can be a ‘race to the bottom’, where countries have to continue to lower their taxes in order to make them the lowest to encourage investment - fall in revenue for all countries eventually
