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8. Explain how an overstatement of a product's transfer price would impact: 1) a domestic Competitor 2) a national government, and 3) trade statistics. 9.

8. Explain how an overstatement of a product's transfer price would impact: 1) a domestic

Competitor

2) a national government, and

3) trade statistics.

9. What challenges does the increasing role of TNCs in the global marketplace present for

governments? Foreign Exchange Markets:

10. Contrast fixed exchange and flexible exchange rate systems. What significance does a flexible exchange system have for monetary policy?

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