A parent firm should maximize its income in low tax countries and minimize profit in high tax markets

Question

Quizplus · Accepted Answer

This statement reflects tax avoidance strategies of multinational corporations, where they shift their profits from high tax countries to low tax jurisdictions, in order to minimize their tax liability and maximize their income. However, these practices have come under scrutiny and criticism in recent years, as they can have detrimental effects on tax revenues and economic development in high tax jurisdictions.

A Parent Firm Should Maximize Its Income in Low Tax