External Factors Considered in Setting Transfer Prices in Multinational Firms

question 112

Multiple Choice

External factors considered in setting transfer prices in multinational firms typically do not include

• A)the corporate income tax rates in host countries of foreign subsidiaries.
• B)foreign monetary exchange risks.
• C)environmental policies of the host countries of foreign subsidiaries.
• D)actions of competitors of foreign subsidiaries.

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Definitions:

Economic Recessions

Periods of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Sector Growth

Sector Growth refers to the increase in the size, output, or activity of a specific segment of the economy or market.

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).

Philanthropy

The act of promoting the welfare of others, typically through generous donations of money to good causes.