Because tax rates are different in different countries,companies have incentives to set transfer prices that will
A)increase revenues in low-tax countries.
B)decrease costs in high-tax countries.
C)decrease revenues in low-tax countries.
D)None of the answers is correct.

Question

Quizplus · Accepted Answer

Because tax rates are different in different countries, companies have incentives to set transfer prices that will increase revenues in low-tax countries.

Because Tax Rates Are Different in Different Countries,companies Have Incentives