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3. You are transporting semi-finished products from Mauritania to Morocco, two countries in the northern African continent. Mauritania has a tax rate of 50% and

3. You are transporting semi-finished products from Mauritania to Morocco, two countries in the northern African continent. Mauritania has a tax rate of 50% and Morocco has a tax rate of 30% and Morocco has a 10% duty on any imports.

To save tax and import duties across the countries for your organization would you charge a low transfer price or a high transfer price? Why?

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