The principle by which the tax authorities allow firms to reduce ...

[casperchen82]

The principle by which the tax authorities allow firms to reduce their tax liability by the amount of income taxes paid to a foreign government is known as a tax credit.
 
  Indicate whether the statement is true or false

Question 2

Labor cost advantages gained by moving into a country with low wages may be short-lived because tax increases cancel out the low-wage advantages.
 
  Indicate whether the statement is true or false

[cloudre37]

Answer to Question 1

TRUE

Answer to Question 2

FALSE