What Is the LEAST Likely Reason That MNEs Set Arbitrary

question 55

Multiple Choice

What is the LEAST likely reason that MNEs set arbitrary transfer prices?

• A) take advantage of tax differences between countries
• B) achieve economies of scale on a global level
• C) circumvent national controls
• D) manipulate profits

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Definitions:

Freud's Terminology

The specific concepts and terms developed by Sigmund Freud to describe elements of his psychoanalytic theory, including the unconscious mind, ego, and defense mechanisms.

Defense Mechanism

Psychological strategies employed by individuals, unconsciously, to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism where stressful thoughts or memories are unconsciously blocked from entering awareness.

Reaction Formation

A psychological defense mechanism where an individual behaves in a way that is directly opposite to their true feelings or impulses.