When an American corporation merges with a foreign firm in order to lower its taxation by paying foreign tax rates instead of American tax rates, it is called

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Corporate inversion is the process of an American corporation merging with a foreign company in order to lower its taxation by paying foreign tax rates instead of American tax rates. This is often done by relocating the headquarters of the corporation to a country with lower tax rates.

When an American Corporation Merges with a Foreign Firm in Order