If a Dollar Earned by a Foreign Affiliate Is Taxed

question 61

Multiple Choice

If a dollar earned by a foreign affiliate is taxed under the same rules as a dollar earned by a domestic affiliate of the MNC,then we have achieved

• A)capital-export neutrality.
• B)capital-import neutrality.
• C)national neutrality.
• D)tax equity.

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Definitions:

Causes

The underlying factors or reasons for an event or situation, often analyzed in problem-solving and decision-making processes.

The Law of Unintended Consequences

The principle that actions, especially those taken on a large scale, can have unanticipated and often undesirable effects.

Uncertainty

The state of having limited knowledge, making it impossible to precisely predict the future or outcomes.

Confidence

Confidence is the belief in one's abilities and qualities, fostering a positive self-perception and courage to face challenges.