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Suppose an MNC subsidiary buys 100 input units from its parent at a price of $2 each. It has $300 in additional production costs, and sells its 100 units of output for $6 to the MNC. It pays a 25% local profit tax. The MNC sells the output at home for $8, and its cost of producing inputs is $1. It pays a profit tax of 20% at home on repatriated profits. What is the subsidiary net profit, assume no selling costs at home? What is the MNC's total profit from the operation?
Serial Communication Protocols
Standards or systems for the organized transfer of data sequentially over a communication channel between computers and devices.
Closed-Loop
Closed-Loop refers to a system or process that uses feedback to control states or outputs, aiming for stable operation and error correction.
Open-Loop System
A control mechanism that operates without using feedback to adjust its input based on the outputs.
More Complex
Referring to a system or process that has a greater level of intricacy or difficulty.
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