This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: MNEs most likely engage in transfer pricing for which of the following reasons? A) Managers want ... (Read 165 times)

rayancarla1

  • Hero Member
  • *****
  • Posts: 571
on: Jul 7, 2018
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
Reply #1 on: Jul 7, 2018
Answer to Question 1

C

Answer to Question 2

D


rayancarla1

  • Member
  • Posts: 571
Reply 2 on: Jul 7, 2018
Wow, this really help

ASDFGJLO

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Experiment of Lederberg and Tatum demonstrating gene transfer in E. coli. Experiment of Lederberg and Tatum demonstrating gene transfer in E. coli.
Male giraffes will engage in necking to establish dominance. Male giraffes will engage in necking to establish dominance.
The F integration site determines the order of gene transfer in Hfrs The F integration site determines the order of gene transfer in Hfrs
Fathers engage in physical play with infants more often than mothers do Fathers engage in physical play with infants more often than mothers do
Dolly the sheep was the first mammal cloned by nuclear transfer from a somatic cell Dolly the sheep was the first mammal cloned by nuclear transfer from a somatic cell
Gene-transfer processes in bacteria Gene-transfer processes in bacteria
Video: Functional zones in a mitochondrion

For a complete list of videos, visit our video library