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Consider a Situation Where a Foreign Investor Firm in Country

Question 10

Multiple Choice

Consider a situation where a foreign investor firm in country A wishes to move recorded profits out of country A to another plant location in country B. If the firm wants to utilize transfer pricing, it would want to record the prices of its exported goods from country A to country B at a __________ value than would be the case in an ordinary market transaction, and the firm would, when recording the prices of goods that it imports into country A from country B, __________ value than would be the case in an ordinary market transaction.


A) higher; want to record the prices at a lower
B) higher; also want to record the prices at a higher
C) lower; also want to record the prices at a lower
D) lower; want to record the prices at a higher

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