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• Background Note | HBS Case Collection | 2013

  Comparative Advantage

  Matthew Weinzierl

  The theory of comparative advantage is a factor in international trade. In this note, we introduce the basic economics of comparative advantage and study its key implications.

  Keywords: Business and Government Relations; Comparative Advantage; economics; International trade;

  Citation:

  Weinzierl, Matthew. "Comparative Advantage." Harvard Business School Background Note 713-080, April 2013.

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• Course Overview Note | 2013 (Revised from original 2010 version)

  Introduction to Business, Government, and the International Economy (BGIE)

  Catherine S. M. Duggan, Aldo Musacchio and Matthew C. Weinzierl

  Keywords: Business and Government Relations; International Relations; Trade;

  Citation:

  Duggan, Catherine S. M., Aldo Musacchio, and Matthew C. Weinzierl. "Introduction to Business, Government, and the International Economy (BGIE)." Harvard Business School Course Overview Note 710-045, January 2013. (Revised from original January 2010 version.)

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• Case | HBS Case Collection | 2013 (Revised from original 2010 version)

  California's Budget Crises, Tax Reform, and Domestic and International Tax Competition

  Matthew C. Weinzierl and Jacob Kuipers

  How do (and how should) governments design fiscal policies to compete in a globalized economy while meeting internal policy priorities including redistribution? In 2009, Governor Arnold Schwarzenegger repeatedly declared fiscal emergencies as California's state budget deficit reached all-time highs. The Governor and legislative leaders established the Commission on the Twenty-first Century Economy to recommend tax reforms that would improve the state's fiscal health and competitiveness. But when the Commission issued its recommendations, many of which were consistent with domestic and international trends in taxation, legislative leaders were highly critical and the prospects for reform dimmed. The case describes the political and economic contributors to California's persistent fiscal deficits and the reforms recommended by the Commission. It summarizes recent trends in taxation by U.S. states and OECD nations, relating the empirical trends to tax theory. Finally, it engages the issue of inter-jurisdictional tax competition from both positive and normative perspectives.

  Keywords: Budgets and Budgeting; Economy; Globalization; Governing Rules, Regulations, and Reforms; Policy; Taxation; Competition; California;

  Citation:

  Weinzierl, Matthew C., and Jacob Kuipers. "California's Budget Crises, Tax Reform, and Domestic and International Tax Competition." Harvard Business School Case 710-038, January 2013. (Revised from original April 2010 version.)

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