To Minimize Transaction Costs on Foreign Subsidiary Profits in Low-Tax

question 33

True/False

To minimize transaction costs on foreign subsidiary profits in low-tax countries,firms may use transfer prices.

---

Definitions:

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes.

Gymnosperm

Type of woody seed plant in which the seeds are not enclosed by fruit and are usually borne in cones, such as those of the conifers.

Cycad

Type of gymnosperm with palmate leaves and massive cones; cycads are most often found in the tropics and subtropics.

Classified

Categorized or organized into groups based on shared characteristics or attributes.