This topic contains a solution. Click here to go to the answer

Author Question: MNEs most likely engage in transfer pricing for which of the following reasons? A) Managers want ... (Read 97 times)

rayancarla1

  • Hero Member
  • *****
  • Posts: 571
MNEs most likely engage in transfer pricing for which of the following reasons?
 
  A) Managers want to maintain a steady stream of foreign-earned income in countries with strong currencies.
  B) Firms want to generate additional sales by charging low prices to developing countries and high prices to advanced economies.
  C) Management wants to maximize profitability by moving profits from a nation with high corporate taxes to one with low corporate taxes.
  D) Firms want to maximize expenditures in countries with weak economies and shift the savings to advertising and transportation costs.

Question 2

Which of the following is a primary cause of gray market activity?
 
  A) a firm's inability to control production and distribution costs
  B) a significant difference in price between national distributors
  C) a firm's decision to flood the market with substandard products
  D) a large price difference between two countries for the same product



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mammy1697

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

C

Answer to Question 2

D




rayancarla1

  • Member
  • Posts: 571
Reply 2 on: Jul 7, 2018
:D TYSM


fatboyy09

  • Member
  • Posts: 358
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Your heart beats over 36 million times a year.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

For a complete list of videos, visit our video library