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Assume an MNC has a UK subsidary importing coffee beans from Swiss subsidary. Assumeing coporate taxes in the UK are 35% and 15% in Switzerland,

Assume an MNC has a UK subsidary importing coffee beans from Swiss subsidary. Assumeing coporate taxes in the UK are 35% and 15% in Switzerland, the MNC would want to use...

a.

the lowest transfer price possible.

b.

the highest transfer price possible.

c.

the transfer price will not matter since this is an inner-company transaction.

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