Right, that would continue to be true. However, now, a corporation can be headquartered in one country to have access to labor and shunt all profit through a s

Right, that would continue to be true. However, now, a corporation can be headquartered in one country to have access to labor and shunt all profit through a subsidiary in a low tax country. They get the benefit of a skilled labor force without paying tax on the profits created by that labor. Fix the tax shelter problem and the incentive for countries becomes "make a labor force worth the tax rate or lower the tax rate".