Global Giant, a multinational corporation, has a producing subsidiary in a low tax rate country and a marketing subsidiary in a high tax country. If Global Giant wants to minimize its worldwide tax liability, we would expect Global Giant to
A) stop producing in the low tax rate country.
B) stop marketing in the high tax rate country.
C) establish a low transfer price when the producing unit sells to the marketing unit.
D) establish a high transfer price when the producing unit sells to the marketing unit.
E) be indifferent as to its transfer pricing policy.
Correct Answer:
Verified
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