Explain how governments might give their local firms

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Question - Impact of Government Policies on Trade

Governments of many countries enact policies that can have a major impact on international trade flows.

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?

Reference no: EM132907712

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