Suppose General Motors charges its Mexican subsidiary $1 million for auto assembly equipment that could be purchased on the open market for $800,000.This practice is BEST referred to as

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The practice described in the scenario is known as transfer pricing, which refers to the price set for goods or services transferred between different units or subsidiaries within the same company or group. In this case, General Motors is charging its Mexican subsidiary an inflated price for the equipment, likely to transfer profits out of the country, avoid taxes, or manipulate financial statements. This practice can be legal if the prices are aligned with market prices and conducted at arm's length, but unethical or illegal if they are not. International dumping refers to the selling of goods below cost to gain a competitive advantage, and cost-plus pricing is a method of setting prices based on costs and a markup. Technological transfer refers to the sharing of knowledge, skills, or technology between companies, countries, or institutions.

Suppose General Motors Charges Its Mexican Subsidiary $1 Million for Auto