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Governments are in a competitive market for how business friendly they are. This creates pressure to create beneficial tax and subsidy regimes or risk losing bu
by Joeri 8y ago
Governments are in a competitive market for how business friendly they are. This creates pressure to create beneficial tax and subsidy regimes or risk losing businesses. If a government plays it too strict, multinationals will minimize their operations and local businesses won't be able to compete internationally.
The way I see it, it's really the market at work, doing exactly what markets do. Negotiating a price (tax cuts and subdidies) in exchange for a good or service (business presence hiring staff and causing economic activity).
- petre 8y agoThey could just cut taxes instead.
- pokemongoaway 8y agoMultinationals and globalism are definitely where the study of markets need more light & publicity. Maybe governments should be responsible for its people when they are abroad and commit crimes, and this should include companies. If it is a crime for a US company to infiltrate US government in order to use its power, then why isn't it a crime for a US company to infiltrate foreign government to use its coercive power? And if one government wants to offer a foreign company better deals than that company's home government, then I don't see why that should be illegal. However, if that company is making (nuclear) weapons for a foreign government that might be used aggressively against their home government, then that's a serious case for debate. However, this is what treaties seem to be for...