Question Details

Explain how governments might give their local firms a competitive advantage 



1.	Currency Effects. When South Korea- export growth stalled, some South Korean firms suggested that South Korea- primary export problem was the weakness in the Japanese yen.  How would you interpret this statement?
2. Impact of Government Policies on Trade. Governments of many countries enact policies that can have a major impact on international trade flows. 
a. Explain how governments might give their local firms a competitive advantage in the international trade arena. 
b. Why might different tax laws on corporate income across countries allow firms from some countries to have a competitive advantage in the international trade arena? 
c. If a country imposes lower corporate income tax rates, does that provide an unfair advantage? 



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