Author Question: Taiwan and Jamaica are both islands that have pursued export-oriented development strategies, but ... (Read 167 times)

ARLKQ

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Taiwan and Jamaica are both islands that have pursued export-oriented development strategies, but Jamaica has experienced increases in unemployment and poverty, while Taiwan has experienced decreases. How might you explain this?
 
  What will be an ideal response?

Question 2

How is tax incidence important in tax policy in developing countries?
 
  What will be an ideal response?



Briannahope

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Answer to Question 1

The type of exports, commodity or manufactured, may matter. You may wish to use other countries as illustrations, depending on the examples you use in lecture.

Answer to Question 2

Incidence is the extent to which the burden of a tax is born by the activity taxed. To the extent that substitution is possible, an activity will be abandoned when taxed, and revenue will not be collected. The answer should provide examples of this.



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