Suppose General Electric Charges Its Mexican Subsidiary $500,000 for Manufacturing

question 20

Multiple Choice

Suppose General Electric charges its Mexican subsidiary $500,000 for manufacturing equipment that could be purchased in the open market for $300,000.This practice is best referred to as

• A)price gouging.
• B)transfer pricing.
• C)export subsidy.
• D)predatory pricing.

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Definitions:

Hierarchical Thinking

The cognitive process of organizing concepts, ideas, or information into levels of importance or ranks.

Distributed Intelligence

A concept where knowledge and cognitive processes are spread across individuals, artifacts, and tools in a network or system.

Constructive Resistance

A form of opposition or protest that aims to bring about positive change through non-destructive methods.

Dysfunctional Resistance

Opposition or pushback that is harmful to organizational change efforts, often stemming from fear, misunderstanding, or lack of trust.