​Multinational Companies with Subsidiaries in Both High- and Low-Tax Countries

question 18

Multiple Choice

​Multinational companies with subsidiaries in both high- and low-tax countries may use transfer pricing to:

• A) ​shift costs to high-tax countries and to shift revenues to low-tax countries.
• B) shift revenues to high-tax countries and to shift costs to low-tax countries.
• C) shift costs and revenues to high-tax countries.
• D) shift costs and revenues to low-tax countries.

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Definitions:

Operationalize

The process of defining a concept in measurable terms, allowing it to be tested, measured, or used in data collection.

Quantifiable Measures

Variables or aspects of a situation that can be expressed numerically, allowing for measurement and comparison.

Methodological Challenges

Refers to difficulties encountered in the process of conducting research or analysis, often related to the design, implementation, and interpretation of studies.

Resilience

The capability of individuals, communities, or systems to recover quickly from difficulties or adapt to significant stress and change.