2 comes up in Australia a lot in regards to levying taxes on the resource sector, whose business model is digging up bits of Australia and selling it overseas.

Any/all attempts to levy more taxes on their vast profits are met with claims that they’ll just pack up and leave, even though the activity would still be profitable.

It never really made sense, but they always manage to drum up enough fear to scupper any plans.

It’s about opportunity cost. Just being profitable is not enough.