A major problem with MNEs using offshore financial centers is that they may give unfair tax advantages to companies.

Question

Quizplus · Accepted Answer

Offshore financial centers often have lower tax rates or provide tax incentives, which can give MNEs an unfair advantage over companies that are based in countries with higher tax rates. This can lead to a loss of tax revenue for the countries where MNEs do business and can be seen as an unethical practice.

A Major Problem with MNEs Using Offshore Financial Centers Is