For USMNEs,the Tax-Deferral Privilege Operating Through a Foreign Subsidiary Was Not

question 46

True/False

For U.S.MNEs,the tax-deferral privilege operating through a foreign subsidiary was not originally a tax loophole.On the contrary,it was granted by the U.S.government to allow U.S.firms to expand overseas and place them on a par with foreign competitors,which also enjoy similar types of tax deferral and export subsidies of one type or another.

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Definitions:

Wheatstone Bridge

A circuit used to accurately measure resistance.

Impedance Voltage Tester

A tool used to measure the voltage drop across a component or circuit to calculate its impedance.

Ohmmeter

A device used to measure resistance.

Ammeter

An instrument used to measure the flow of current.