Tax-Haven Subsidiaries Are Typically Established in a Country That Can

question 62

Multiple Choice

Tax-haven subsidiaries are typically established in a country that can meet the following requirements:

• A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
• B) the facilities to support financial services, for example, good communications, professional qualified office workers, and reputable banking services.
• C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
• D) all of the above

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Definitions:

Positioning

Form of promotion in which marketers attempt to establish the identity and value of their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes, price, quality, or use of a good or service.

Promotion

Function of informing, persuading, and influencing a purchase decision.

Identity

The distinctive characteristics or personality of an individual, organization, or brand, which sets it apart from others.

Product Placement

Form of promotion in which marketers pay fees to have their products showcased in various media, ranging from newspapers and magazines to original online television and movies.