Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses? State and local governments:
A) often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid.
B) try to avoid competition with other areas, because such competition usually backfires and creates ill will.
C) no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results.
D) work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area.

Question

Quizplus · Accepted Answer

State and local governments often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid. This is a common practice among state and local governments trying to boost their economies and create jobs. They offer various incentives to businesses to locate in their area, including tax breaks, subsidies, and infrastructure improvements. This approach is known as economic development or business attraction.

Which of the Following Statements Best Reflects the Approach State