Why do you think so many City governments and state seem to bend over backwards to get new businesses to locate and their local economies? Indeed, many cities, countries and states offer tax breaks (e.g. promises to not impose local property taxes for up to 15 years), and some provide land free to businesses who choose to locate in their areas. What concepts could explain this behavior?

Why do you think so many City governments and state seem to bend over backwards to get new businesses to locate and their local economies? Indeed, many cities, countries and states offer tax breaks (e.g. promises to not impose local property taxes for up to 15 years), and some provide land free to businesses who choose to locate in their areas. What concepts could explain this behavior?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter10: Strategy: The Quest To Keep Profit From Eroding

Section: Chapter Questions

Problem 10.3IP

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