A question related to tax.

Thank you very much!

Zlata, 26. hehe C. Tax costs decrease (and cash flows increase) when income is generated in a jurisdiction with a low tax rate. D. Multinational example: A U.S. parent company faces a 21% tax rate. Subsidiary in Japan faces a 50% tax rate. U. S. manufacturers a product for $100 and Japanese subsidiary packages it and markets it for $200. Packaging and marketing costs are $10. What price would the parent prefer to charge the sub? (Note that most countries have laws that require arms-length prices) uis Parent: 21% tax rate $100 sub: 50% tax rate $200 cost - $10