During downturns in the local economy, governments are unlikely to control foreign investment through taxation.

Question

Quizplus · Accepted Answer

During downturns in the local economy, governments are likely to control foreign investment through taxation. Increasing the taxes of international companies can help to cover downturns in the short run. Taxing international firms is often the first step a government takes because taxing its own people is an unpopular decision.

During Downturns in the Local Economy, Governments Are Unlikely to Control