Repeal some of tax breaks to business

Assignment Help Macroeconomics

Reference no: EM1311331

Suppose the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years. If investment tax credits granted earlier are either repealed or eliminated, what impact will the repeal have on the exporting of jobs to foreign countries? Explain using isoquant/icocost theory.

As the larger businesses have to pay more taxes, their spending funds for employment will decrease causing them to probably export more jobs to foreign countries as their labor is cheaper. A great way to compare which way either foreign or domestic labor you as a manager could get more of would be by using the isocost analysis. Isocost will show you how much labor you could get for the same amount of money. Isoquant would work to show you what combo of labor domestic/foreign gives you the same about of ouput.

Reference no: EM1311331

Questions Cloud

Total increase in cash during the year : From the following selected data, compute - Total increase (decrease) in cash during the year

Pearson product-moment correlation coefficient : The Pearson Product-Moment Correlation Coefficient (r) is a measure of linear relationship between two variables.

Evaluate net cash flow : From the following selected data, compute - Evaluate Net cash flow provided (used) by financing activities.

Comparison of two variables using standard deviation : What is the standard deviation of expected returns for Stock X? For Stock Y?

Repeal some of tax breaks to business : Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses throughout the past several years. What impact will the repeal have on the exporting of jobs to foreign countries? describe by using isoquant ..

Cash flow computations : Finding the Net cash flow provided (used) by investing activities - Cash Flow Computations and From the following selected data, compute

Essay on analyzing a work of art : Analyzing a work of art .Select an image of an existing art form that caputures the story and the aspect of the analysis we have chose

Find the net cash flow provided by operating activities : Finding the Net cash flow provided by operating activities

Expected returns and portfolio variance : What happens to the expected return and standard deviation of returns of the portfolio in Part a if the following conditions exist?

User Account

All Pages