Free Trade

[Vlerchan]

I used a number of these sources in a paper I wrote. Because I don't want to chance plagiarism software picking up this post I have hidden it.

[lliam]

Wouldn't it be easier, to bring all social systems into line, so that the tax is equal in every nation around the world. Ergo, it would not matter where amy good is produced, almost. Cause the tax on any product is equal worldwide.

Accordingly, the production costs are almost all the same, at least fiscally. And based on this there would be almost no local advantages for corporations, as well as the labor costs would be the same everywhere and such.

[Judean Zealot]

Wouldn't it be easier, to bring all social systems into line, so that the tax is equal in every nation around the world. Ergo, it would not matter where amy good is produced, almost. Cause the tax on any product is equal worldwide.

Accordingly, the production costs are almost all the same, at least fiscally. And based on this there would be almost no local advantages for corporations, as well as the labor costs would be the same everywhere and such.

Production costs would still be unequal, given the unequal distribution of resources and manpower.

[Vlerchan]

Judean Zealot is correct. The idea of comparative advantage rests on the idea of differentiated factor endowments leading to different production costs.

Odds of agreeing on a universal tax rate is slim and it would be the equivalent of a global corporation tax. I've stated on this board before that I find corporation taxation pretty awful.