1. What is the group's (i.e., single economic unit's) overall tax rate? a) 27.69% b) 25.5% c) 28.5% e) 21%

34. If Tio wants to minimize world-wide taxes, it should direct

(a) Ecuador to increase the price it charges to Taiwan for each widget. (b) Taiwan to reduce the price it charges its customers.

(c) Taiwan not to pay any dividends to Ecuador.

(d) Ecuador not to pay any dividends to Taiwan.

(e) All of the above.

2What will the group's overall gross profit be if Taiwan paid $80 per unit? (a) $10,000

(b) $55,000

(c) $65,000

(d) $90,000

3. What will the overall tax rate be if Tio instructed Ecuador to increase the price it charged Taiwan for each widget to $80 per unit?

a) 25% b) 28% c) 21% d) 23.08%

4. Which taxing jurisdiction would contest the discretionary transfer price of $80? (a) United States

(b) Ecuador

(c)Taiwan

(d) All of the above