The repeal some of the tax breaks to the business also isoquant
Suppose the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several yrs. If investment tax credits granted earlier are either repealed or eliminated, Illustrate what impact will the repeal have on the exporting of jobs to foreign countries? Elucidate using isoquant/icocost theory.
As the larger businesses have to pay more taxes, their spending funds for employment will decrease causing them to probably export more jobs to foreign countries as their labour is cheaper. A great way to compare which way either foreign or domestic labour you as a manager could get more of would be by using the isocost analysis. Iso cost will describe how you describe how much labour you could get for the same amount of money. Isoquant would work to describe how you illustrate what combo of labour domestic/foreign gives you the same about of output.