Suppose a U

question 99

Multiple Choice

Suppose a U.S.-based MNC makes bicycles with parts from its subsidiary in a low-tax East Asian country. The bicycle frames are made here, the component parts (cranksets, wheels, and so on) are made abroad, the bicycles are assembled in Japan and reimported to the U.S. It can reduce its reported U.S. income-and increase its subsidiary's profits-by

• A)overcharging its subsidiaries for the U.S.-made frames.
• B)undercharging its subsidiaries for the U.S.-made frames.
• C)assembling the bicycles in the U.S.
• D)none of the above

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Definitions:

Pituitary

A small, pea-sized gland located at the base of the brain that produces hormones regulating growth, blood pressure, and other important functions of the body.

Sperm Production

The process by which male reproductive organs produce sperm, essential for sexual reproduction.

Prostate Gland

A gland in the male reproductive system that produces fluid that nourishes and transports sperm during ejaculation.

Homologous

Structures or organs in different organisms that are derived from a common ancestor, displaying similarity due to evolutionary origin.