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• W2509661529 abstract "This paper studies the role of profit taxation for an international firm's decision upon how to penetrate a foreign market - through exports or through foreign direct investment (FDI) and local supply. We show that with harmonized taxes the international firm may choose FDI even though this has welfare costs from a global point of view. With tax competition, the host country can enforce exporting instead of FDI. This leads to a Nash equilibrium associated with higher world welfare than harmonized taxes. Thus, because of the effect on entry mode, tax competition provides heretofore unexplored" @default.
• W2509661529 created "2016-09-16" @default.
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• W2509661529 date "2016-01-01" @default.
• W2509661529 modified "2023-09-27" @default.
• W2509661529 title "Profit taxation and the mode of foreign" @default.
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• W2509661529 hasPublicationYear "2016" @default.
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