[citation needed] The gradual process of globalization is lowering these barriers and results in rising capital flows and greater manpower mobility.
Some countries (e.g. Republic of Ireland) utilized their low levels of corporate tax to attract large amounts of foreign investment while paying for the necessary infrastructure (roads, telecommunication) from EU funds.
The net contributors (like Germany) strongly oppose the idea of infrastructure transfers to low tax countries.
[citation needed] Advocates for tax competition say it generally results in benefits to taxpayers and the global economy.
[5] [6] Others argue that tax competition is generally harmful because it distorts investment decisions and thus reduces the efficiency of capital allocation, redistributes the national burden of taxation away from capital and onto less mobile factors such as labour, and undermines democracy by forcing governments into modifying tax systems in ways that voters do not want[citation needed].
[10] Right-wing economists argue that tax competition means that taxpayers can vote with their feet, choosing the region with the most efficient delivery of governmental services.