Which of the following operational goals for the international firm may be incompatible with the others?

Question

Quizplus · Accepted Answer

Maintaining a strong local currency may require the firm to limit its exports and increase imports, which in turn may increase the firm's effective global tax burden and decrease its after-tax income. Maximizing after-tax income may require the firm to seek lower tax jurisdictions, which could weaken local currency and increase the firm's effective global tax burden. Minimizing the firm's effective global tax burden may require the firm to shift profits to subsidiaries in lower tax jurisdictions, which may weaken the local currency and reduce after-tax income. Therefore, each of these goals may be incompatible with one or more of the others.

Which of the Following Operational Goals for the International Firm