Recall the Application about European soccer stars choosing to play for clubs in countries with lower tax rates to reduce their taxes to answer the following question(s). A study conducted by economists Henrik Jacobsen Kleven, Camille Landais,and Emmanuel Saez found that top tax rates and tax breaks do matter when soccer stars choose where to locate.
-According to this Application, many economists believe that the increase in "globalization" in the last 30 years has ________ the ability of countries to levy taxes at rates that differ substantially from other countries.

Question

Quizplus · Accepted Answer

The increase in globalization has limited the ability of countries to levy taxes at rates that substantially differ from those of other countries, as individuals and businesses can more easily move to locations with more favorable tax rates.

Recall the Application About European Soccer Stars Choosing to Play