Which of the Following Is Not an Observed Response of Multinational

question 18

Multiple Choice

Which of the following is not an observed response of Multinational Enterprises (MNEs) to higher corporation tax in one country

• A) Lowering wages in that location
• B) Internal restructuring to shift profits to lower tax locations
• C) Altering investment plans so as to expand into new, lower tax, locations
• D) Altering investment plans so as to scale back in the higher tax location
• E) Altering investment plans so as to expand in existing plants that are in a lower tax location

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Definitions:

Downsizing

The process of reducing an organization's workforce or operations to decrease costs and improve efficiency, often leading to layoffs.

Workforce

The collective group of individuals engaged in work or employment within an organization, region, or country, contributing to its economy.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.