The state of Junis wants to revamp its infrastructural facilities of bridges and underwater tunnels.Consequently,it invites highly competent international infrastructure development companies to pitch in with their bids.In order to attract them,Junis lowers its tax rates below the national taxation levels imposed on foreign investors.Which of the following types of federalism is exhibited by Junis?

Question

The state of Junis wants to revamp its infrastructural facilities of bridges and underwater tunnels.Consequently,it invites highly competent international infrastructure development companies to pitch in with their bids.In order to attract them,Junis lowers its tax rates below the national taxation levels imposed on foreign investors.Which of the following types of federalism is exhibited by Junis?​

Quizplus · Accepted Answer

Junis is exhibiting competitive federalism because it is using a strategy to attract foreign investors by offering tax rates that are lower than the national taxation levels. This creates a competitive environment among states or regions to attract investment and promote economic growth.

The State of Junis Wants to Revamp Its Infrastructural Facilities