XYZ Is a Multinational Firm Operating in the U

Multiple Choice

XYZ is a multinational firm operating in the U.S. and Mexico. The tax on firm profits in Mexico is 76% and the U.S. taxes profits at 39%. Rather than declare all of the firm's profits in Mexico, XYZ's accountants suggest that they raise the price of the inputs and effectively lower the profits of the Mexican subsidiary. The accountants are promoting what practice?

A) national treatment
B) fuzzy accounting
C) transfer pricing
D) localization
E) tax transfers