If a country changes its corporate tax laws so that foreign businesses build and manage more business in that country,then the net capital outflow of that country
A)and the net capital outflow of other countries rise.
B)rises and the net capital outflow of other countries fall.
C)falls and the net capital outflow of other countries rise.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

When foreign businesses invest more in a country due to favorable tax laws, the net capital outflow of that country falls because more capital is flowing into the country. Conversely, the net capital outflow of other countries rises as their capital is being invested abroad.

If a Country Changes Its Corporate Tax Laws So That