MNCs can often decrease their tax liability through

Question

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MNCs can often decrease their tax liability by using transfer pricing, which involves setting prices for goods and services transferred between different parts of the same company in different countries. By setting transfer prices higher in countries with high tax rates and lower in countries with low tax rates, MNCs can shift profits to lower tax jurisdictions and reduce their overall tax liability. The other options may also provide some tax advantage to MNCs, but transfer pricing is the most commonly used method for reducing tax liability.

MNCs Can Often Decrease Their Tax Liability Through