The article examines how different tax rates in countries within a region can create problems and how they can work together to solve them. The study shows that when factors like money can easily move between countries, they might need to agree on taxes to prevent rates from getting too low. But when factors like buildings can't move as easily, competition might not lead to very low tax rates. In some cases, it might be helpful for countries to agree on a minimum tax rate. When countries in different regions work together, they might not need to compete on taxes. Instead, they could focus on agreeing on trade taxes. Cooperation between countries can lead to better outcomes for everyone.