Chester,Inc

Chester,Inc.,a U.S.multinational,earns income in three foreign countries.Country A has a 25% income tax,Country B has a 35% income tax,and Country C has a 45% income tax.In which of these countries could Chester lower its world-wide tax liability by operating through a foreign subsidiary rather than a domestic subsidiary? Assume the foreign subsidiary will reinvest all after-tax earnings rather than paying dividends.

A) Country A
B) Country B
C) Country C
D) All three countries