Multinational Firms Use Transfer Pricing

Multiple Choice

Multinational firms use transfer pricing:

A) to move profit from a high taxing country to a lower taxing country.
B) to facilitate internal financing of one subsidiary by another.
C) to provide low cost inputs to other subsidiaries within the firm.
D) both to move profit from a high taxing country to a lower taxing country and to facilitate internal . financing of one subsidiary by another.