And infrastructure in the second set of countries might not be sufficient for these companies forever without them paying something for it's support: It is iro

And infrastructure in the second set of countries might not be sufficient for these companies forever without them paying something for it's support: It is ironic, of course, that the very tax exemptions granted to Intel and other TNCs under the rules of the Zona Franca, means that these companies do not directly contribute to an increase in the tax revenue needed for significant improvements in infrastructure and education that they benefit from. It is unfortunate that these companies do not appreciate the need to contribute to the generation of the country specific assets they are looking for. But it is even more unfortunate that the government does not recognize the need for such a contribution either. The tax reform attempts that have been sent to the congress only timidly open up the possibility of taxes on TNCs, and with the fear that perhaps these firms will decide to leave the country, in search for more favorable treatment in other developing countries. Of course, these fears are well grounded as firms (like the comments by Intel above) have made it very clear that they do not want to be taxed. http://ase.tufts.edu/gdae/Pubs/rp/DP13Paus_CorderoApr08.pdf http://ase.tufts.edu/gdae/Pubs/rp/DP13Paus_CorderoApr08.pdf as the article continues: Stopping the tax rate race to the bottom among developing countries ultimately requires the imposition of tax floors at a global level, a formidable challenge.