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​Multinational Companies with Subsidiaries in Both High- and Low-Tax Countries

Question 105

Multiple Choice

​Multinational companies with subsidiaries in both high- and low-tax countries may use transfer pricing to:


A) ​shift costs to high-tax countries and to shift revenues to low-tax countries.
B) shift revenues to high-tax countries and to shift costs to low-tax countries.
C) shift costs and revenues to high-tax countries.
D) shift costs and revenues to low-tax countries.

Correct Answer:

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