21世纪研究生英语合教程1课后答案.docVIP

第一单元 Text A Tax Competition Spurs Globalization Key to the exercises 1 Reading comprehension （1）The economic forces behind globalization include rising trade and investment flows, greater labor mobility, and rapid transfers of technology. Those trends have been stimulated by the deregulation of financial markets, reductions in trade barriers, and lower communication costs. （2）Most economists support globalization because it raises the incomes of people worldwide. Another lesser noticed benefit is that it makes it harder for governments to sustain excessively high tax rates. When economic integration increases, individuals and businesses gain the freedom to take advantage of low tax rates abroad. （3）It shows that some smart nations like Ireland are treating international tax competition as an opportunity, not a threat. （4）First, high tax countries have urged international organizations to reduce tax competition. Second, many nations are adding layers of complex rules on businesses to discourage them from investing abroad, rather than reducing tax burdens so that businesses want to invest at home. （5）Because there are more opportunities and lower taxes in cities such as London. （6）The author cites the case of Ireland to show that with the reduction of taxes, a large number of immigrants are attracted, and people at home are unwilling to migrate out. The lower one country’s tax is, the more skilled people will be attracted. （7）Because market competition encourages production efficiency. Tax competition provides an incentive to improve government efficiency. For example, the Federal government is no longer a monopoly—Americans now are able to invest abroad, retire in a low tax Caribbean country, or move their business to low tax Ireland. Accordingly, the Federal government needs to reform the tax code and provide services more efficiently to encourage Americans and their money to stay at home. （8）Tax competition among countries should be a win-win policy, as it restrai