IMPACT OF GOVERNMENT POLICIES ON TRADE The 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?