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Author Question: Special economic zones are customs-privileged facilities that typically exist in countries with ... (Read 34 times)

danielfitts88

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Special economic zones are customs-privileged facilities that typically exist in countries with low-cost labor.
 
 Indicate whether the statement is true or false

Question 2

Cost-based transfer pricing sets the price based on the cost incurred by the company to make the product.
 
 Indicate whether the statement is true or false



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at

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Answer to Question 1

T
Special economic zones are customs-privileged facilities that typically exist in countries with low-cost labor. Under most arrangements, products are brought into an in-bond area, manipulated, and then reexported to the country where the products originated. Maquiladoras in Mexico are an example.

Answer to Question 2

F
Cost-based transfer pricing does not set the price based on cost incurred by the company, but rather by the estimated opportunity cost of the product.




danielfitts88

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


covalentbond

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Reply 3 on: Yesterday
Wow, this really help

 

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