Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
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