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Corporations oftenvote with their feetin terms of doing business where expenses are lowest and revenues are highest. Buying low and selling high is a basic

  • Corporations often"vote with their feet"in terms of doing business where expenses are lowest and revenues are highest. Buying low and selling high is a basic economic formula for success that has motivated international trade in many ways over the centuries.This is popularly discussed when governments consider tax policiesand is also applicable when they also consider the less obvious factor of environmental protections laws. If Mexico has no ban on DDT (a pesticide used in agriculture) and the USA has banned the use (but not the manufacture) of DDT, should a corporation buy land in Mexico, import DDT from the USA, grow larger crops, and export them to the USA?

  • Do you agree that environmental protection laws are "less obvious" as suggested above? Why/why not?

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