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Allocation of Debt and Earnings Stripping a. A MNE should borrow debts from its unit in a low tax country b. A MNE should allocate

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Allocation of Debt and Earnings Stripping a. A MNE should borrow debts from its unit in a low tax country b. A MNE should allocate more earnings to its branch in a high income tax country. CAMNE should allocate more costs in its unit in a high income country. d. A MNE in a country with foreign tax credits will pay more corporate income tax

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