Taxation and Trade
The large inflow of official assistance to FSM allows it to run a substantial trade deficit and to have a much lighter tax burden than other states in the region (11% of GDP in FSM compared to 18%-25% elsewhere). The government also borrowed against future Compact disbursements in the early 1990s, yielding an external debt of $111 million in 1997 (over 50% of GDP).
There are no patent laws in Micronesia.
Read more about this topic: Economy Of The Federated States Of Micronesia
Famous quotes containing the words taxation and/or trade:
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—Anna Quindlen (b. 1952)
“A nose, kind sir! Sure, Mother Nature,
With all her freaks, ne’er formed this feature.
If such were mine, I’d try and trade it,
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—Susanna Moodie (1803–1885)