According to the Alcacer note, “Where to Locate?” which of the statements below is most true of the role of government incentives in firm location choice?
Option A
According to the survey data in the Note, In 99% of government incentive packages, tax incentives offered by local governments cost the local communities substantially less than the economic benefits of attracting new firms.
Option B
According to the survey data presented in the Note, backlash to incentive packages is more likely to occur if the recipients are local firms rather than international firms because communities have greater respect for international businesses.
Option C
Governments face tradeoffs when contemplating incentives packages – on one hand, incentive packages may boost local economic activity; on the other hand, they are often quite expensive for the communities and taxpayers who offer them.
Option D
None of the answers is relevant for any of the issues discussed in the Alcacer Note.