What and how much a firm transfers within its global manufacturing system is a function of the tax systems in various countries to and from which the transfers are being made.

Question

Quizplus · Accepted Answer

Firms often adjust what and how much they transfer within their global manufacturing systems based on the tax systems of the countries involved, aiming to minimize tax liabilities and maximize after-tax profits. This can involve strategies like transfer pricing, where the prices of goods and services sold between subsidiaries in different countries are set to influence the allocation of income and expenses in a way that reduces the overall tax burden.

What and How Much a Firm Transfers Within Its Global