In order to maximize profits, multinationals typically use transfer pricing by showing ________ profits in the high-tax country and by showing ________ profits in the low-tax country.
A) high; low
B) low; high
C) economic; normal
D) above-normal; accounting
Question 2
A firm becomes a multinational enterprise when
A) it lists its stock on a stock exchange other than the one in its home country.
B) it undertakes foreign direct investment.
C) it undertakes foreign portfolio investment.
D) Any of the above.
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