Transfer Pricing Takes Place When MNCs Require the Local Affiliate

Multiple Choice

Transfer pricing takes place when MNCs require the local affiliate

A) to purchase inputs from other subsidiaries at prices the parent sets to maximize its global profits.
B) to purchase inputs from other domestic suppliers at competitive local prices.
C) to replace local managers to foreign managers.
D) to pay fees for any technology that is transferred.
E) to drive established host-country firms out of business.