1 The U.S. recently reduced the top statutory corporate tax rate from 35 percent to 21 percent. In addition, the U.S. changed from a global to a territorial tax system for multinational corporations. Please explain the likely effects of these tax law changes on inversion activities. 

2. Should companies be allowed to enter into inversions? Please consider the perspective of shareholders and the U.S. Treasury in developing your response. Is the changes in U.S. tax law to lower corporate taxes will eliminate inversion activity permanently?