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6. Countries often offer low corporate tax rates to attract foreign direct investments (establishment of local subsidiaries of multinational corporations). The following reasons are all

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6. Countries often offer low corporate tax rates to attract foreign direct investments (establishment of local subsidiaries of multinational corporations). The following reasons are all true. Which of them did we emphasize in the course? o it creates new jobs. There is spillover of technology (knowledge) from the foreign entity to the local market. The wages paid by a subsidiary of a multinational are often relatively high. The wages are fully taxed, at ordinary tax rates

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