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:

Universal Trait

Characteristics of personality that are considered to exist within every individual across different cultures and societies.

Achievement

The successful attainment or accomplishment of a task, goal, or objective, often recognized or rewarded by others.

Amygdala

A region of the brain's temporal lobe involved in processing emotions such as fear, anger, and pleasure.

Extraversion

A personality trait typified by outgoing, energetic, and sociable behaviors.