To Avoid Paying the Higher Ad Valorem Tariff to a Foreign

question 24

Multiple Choice

To avoid paying the higher ad valorem tariff to a foreign government,a multinational could set the transfer price for its goods entering the country for sale to an affiliate as ________ as possible.

• A) high
• B) low
• C) neutral
• D) proportional

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Definitions:

Mitosis

A process of cell division in which a single cell divides to produce two genetically identical daughter cells.

Metaphase

Third phase of mitosis; chromosomes are aligned at the metaphase plate.

Chromosomes Line Up

A phase during cell division where chromosomes align in the middle of the cell before being separated into daughter cells.

Sister Chromatids

Identical copies of a chromosome connected by a centromere, formed during the S phase of cell division.