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Tax break on foreign investment and risks???? <<<<WHAT

 
 
Reply Tue 19 Apr, 2011 08:04 pm
Im really confused on how a tax break on sovereign investments will propel risks in a country?
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Type: Question • Score: 0 • Views: 824 • Replies: 2
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dspnrykez
 
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Reply Tue 19 Apr, 2011 08:06 pm
@dspnrykez,
and yes i meant sovereign not foreign lol
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laughoutlood
 
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Reply Tue 19 Apr, 2011 10:25 pm
@dspnrykez,
well lol for one smidgen of additional unnecessary info when a paragraph of apposite info is required

ceteris paribus, it encourages a higher amount of investment in that country's (sovereign) debt than would otherwise be the case therefore the risk of sovereign default is heightened

any additional salient factoids in your homework?
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