Export-oriented,labor-intensive,"footloose" industries should:
A) never be offered tax holidays.
B) at times be offered tax holidays because they can be more readily influenced by such incentives, as their options are wider than other industries.
C) at times be offered tax holidays because they are more likely to provide positive spillover.
D) both B and C

Question

Quizplus · Accepted Answer

Footloose industries are more mobile and can relocate easily to take advantage of tax incentives. Therefore, providing tax holidays can influence their decisions to invest in a particular location. Additionally, as these industries have a labor-intensive nature, they can generate positive externalities for the surrounding economy, leading to new job creation and increased economic growth. Therefore, offering tax holidays to export-oriented, labor-intensive, and footloose industries can be beneficial, as it can attract new investments and spur economic development.

Export-Oriented,labor-Intensive,"footloose" Industries Should