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If the French Subsidiary of a U

Question 24

Multiple Choice

If the French subsidiary of a U.S. company ships components to its U.S. parent at an arbitrarily low transfer price,


A) the French subsidiary will show relatively high profits.
B) the French government will collect relatively low corporate income tax.
C) U.S. Customs will collect relatively high tariffs.
D) the U.S. parent will show lower pre-tax profits.

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