If a country changes its corporate tax laws so that domestic businesses build and manage more business in other countries,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 domestic businesses invest more abroad due to favorable tax laws, the net capital outflow of the home country increases, while the net capital outflow of other countries decreases as they receive more investment.

If a Country Changes Its Corporate Tax Laws So That