Global Giant, a Multinational Corporation, Has a Producing Subsidiary in a Low

question 131

Multiple Choice

Global Giant, a multinational corporation, has a producing subsidiary in a low tax rate country and a marketing subsidiary in a high tax country. If Global Giant wants to minimize its worldwide tax liability, we would expect Global Giant to ________.

• A) stop producing in the low tax rate country
• B) stop marketing in the high tax rate country
• C) establish a low transfer price when the producing unit sells to the marketing unit
• D) establish a high transfer price when the producing unit sells to the marketing unit

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Definitions:

Sleeping

A natural and periodic state of rest for the mind and body, characterized by altered consciousness and reduced sensory and muscle activity.

Circadian Rhythm

Day–night rhythm.

Eating Behaviour

Patterns or habits related to how, why, and what people eat, including the psychological, biological, and social factors influencing eating habits.

Ultradian Rhythm

Biological rhythms with a cycle shorter than 24 hours, such as stages of sleep or the pattern of hormonal release.