What has been the impact of social democracy on international business relations in some European countries? Politically conscious foreign firms have begun investing in socialist nations. Low income tax rates have encouraged an influx of FDI. Regulations have forced foreign firms to invest elsewhere. Political stability has decreased the country risk of socialist nations.

Regulations have forced foreign firms to invest elsewhere.

Explanation:

Social democracy is defined as a form of governing philosophy that supports social and economic interventions such as subsidies and the taxes, which helps to achieve a combination of a worthy democratic structure and that of capitalist mixed economy.

In trying to achieve or promotes a social justice within the context of a mixed socialism and capitalism in international business in some European countries, negative regulations such as heavy taxes to finance the economy, have forced foreign firms to invest elsewhere with favourable trade regulations.

Regulations have forced foreign firms to invest elsewhere.

Explanation:

Social democracy is a term used to describe a political consensus that determines that economic and social interventions are made within a country, with the main objective of promoting social justice within a capitalist system that allows the promotion of social well-being, of distribution of honesty and economic regulation.

Social democracy can interfere in several aspects of government, including in international trade relations, as was done in some European countries that determined regulations that obliged foreign companies to invest elsewhere.

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