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Due to Transfer-Pricing Problems, Multinational Corporations Must Shift Profits Away

question 67

True/False

Due to transfer-pricing problems, multinational corporations must shift profits away from countries with low corporate tax rates to high tax-rate countries, thus absorbing a larger tax bite.


Definitions:

Increasing

A process or trend characterized by a gradual rise or growth in quantity, size, intensity, or degree.

McDonaldization

A term that describes the process by which the principles of the fast-food industry, such as efficiency, predictability, and standardization, have come to dominate other sectors of society.

Rationalization

Rationalization is the application of the most efficient means to achieve given goals and the unintended, negative consequences of doing so.

Fast-Food Restaurants

Eateries that offer quick service, convenience, and food that is prepared in bulk in advance and kept hot or reheated to order.

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