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Global Giant,a Multinational Corporation,has a Producing Subsidiary in a Low

Question 19

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Global Giant,a multinational corporation,has a producing subsidiary in a low tax rate country and a marketing subsidiary in a high tax country.If Global Giant wants to minimise its worldwide tax liability,we would expect Global Giant to:


A) stop marketing in the high tax rate country.
B) stop producing in the low tax rate country.
C) establish a high transfer price when the producing unit sells to the marketing unit.
D) establish a low transfer price when the producing unit sells to the marketing unit.

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