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As companies shift south, they quickly use up local labor supplies and push wages up sharply.
Their businesses are booming as European and American clothing companies shift production to Bangladesh from China, where wages are rising.
It said: "Countries should change rules that let companies shift their profits across borders to avoid taxes".
Shipping costs may be lower, particularly if transportation companies shift their fleets to natural gas-powered or electric vehicles.
Companies shift profits "to take advantage of the differential between the U.S. tax rate and rates in low-tax countries," it said.
Eliminating the interest tax deduction may reduce investment, and result in country arbitrage as companies shift debt and equity to offshore subsidiaries with more favorable tax regimes.
Similar(9)
Ultimately, it also led to double non-taxation, with companies shifting all of their profits offshore.
Companies shifting perishable goods risk losing the lot if they refuse to pay up.Ports are a problem, too.
As apartheid waned, white middle-class residents fled to the northern suburbs and companies shifted their headquarters.
Why aren't energy companies shifting to true alternatives rather than sticking with fossil fuels, which are a finite resource?
And the prospect of Japanese companies' shifting more of their production abroad does little to soothe the anxiety.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com