Some competition exists among governments, inasmuch as citizens can act as [[sovereign consumer]]s, moving themselves and their capital to whatever countries they feel have favorable laws. This gives freer nations an advantage in competitions that may arise for military and economic supremacy. [[Albert Einstein]] and others fled from [[Nazi Germany]] to the United States, greatly aiding the U.S. war effort during [[World War II]]. During the [[Cold War]], [[East Germany]] and other [[Soviet]]-bloc countries sought to seal their borders so as to prevent a [[brain drain]] of productive intellectuals fleeing to the West, where they would have more personal and economic freedom. Some countries have implemented [[tax harmonization]] as a means of preventing [[tax competition]] that would otherwise lead to governments competing to offer the lowest-tax business environment. | Some competition exists among governments, inasmuch as citizens can act as [[sovereign consumer]]s, moving themselves and their capital to whatever countries they feel have favorable laws. This gives freer nations an advantage in competitions that may arise for military and economic supremacy. [[Albert Einstein]] and others fled from [[Nazi Germany]] to the United States, greatly aiding the U.S. war effort during [[World War II]]. During the [[Cold War]], [[East Germany]] and other [[Soviet]]-bloc countries sought to seal their borders so as to prevent a [[brain drain]] of productive intellectuals fleeing to the West, where they would have more personal and economic freedom. Some countries have implemented [[tax harmonization]] as a means of preventing [[tax competition]] that would otherwise lead to governments competing to offer the lowest-tax business environment. |