Transfer pricing is defined as ________.
A) methods for transferring funds exclusively from foreign subsidiaries to parent corporations
B) compensation paid to owners of intellectual property
C) the means by which subsidiaries and affiliates charge each other as they exchange goods and services
D) the process through which a parent deposits a large sum in a foreign bank, which transfers it to a subsidiary as a loan
Question 2
A system in which currencies float against one another, with governments intervening to stabilize their currencies at particular target exchange rates is called a ________.
A) managed float system
B) linked exchange rate system
C) free float system
D) fixed exchange-rate system