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seraphim [82]
1 year ago
12

Suppose that Germany decides to become self sufficient in bananas and even to export them. In order to accomplish these​ goals,

large tax incentives are granted to companies that will invest in banana production.​ Soon, the German industry is competitive and able to sell bananas at the lowest price anywhere. A comparative advantage for Germany in banana?
Business
1 answer:
alexandr1967 [171]1 year ago
3 0

Answer:

There is no such thing as tax incentives do not reduce the high chance costs for German banana manufacturing.

<em>All of these (tax revenue is transferred from many other purposes, increased opportunity costs are created, labor and capital are used up in a relatively inefficient effort and economic welfare falls)</em>

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