Answer:
A). The statement that tax havens are "essentially booking centers" refers to the fact that they are countries or territories where individuals or companies can park their money and investments, often without any real economic activity taking place there. Tax havens typically offer low or zero tax rates, strict financial privacy laws, and lax regulation, creating an environment that is attractive to those seeking to minimize or avoid taxes. Some examples of countries that are considered tax havens include the Cayman Islands , Bermuda, and Switzerland.
B). It is unlikely that a developing country would have sufficient resources and infrastructure to become a major tax haven. However, in theory, a developing country could achieve some advantages from becoming a tax haven , such as increased foreign investment and economic growth. However, this would likely come at the expense of other countries who may lose tax revenue as a result of the tax haven status. Additionally, becoming a tax haven may damage the developing country's reputation and discourage other forms of investment and cooperation. Furthermore, tax havens are often associated with corruption, money laundering, and other illegal activities, which could create further problems for a developing country trying to establish its credibility and attract legitimate investment.
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