The government of Saudi Arabia is concerned that MNCs are adjusting transfer prices to their Saudi subsidiaries in order to decrease tariff payments in Saudi Arabia.The Saudi government should

Question

Quizplus · Accepted Answer

Decreases in transfer prices can lead to lower tariff payments since tariffs are often calculated based on the declared value of goods. By reviewing decreases in transfer prices, the Saudi government can ensure that MNCs are not underreporting the value of goods to reduce tariff liabilities.

The Government of Saudi Arabia Is Concerned That MNCs Are