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Company X, a multinational corporation, has a producing subsidiary in a low tax rate country and a marketing subsidiary in a high tax country.

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Company X, a multinational corporation, has a producing subsidiary in a low tax rate country and a marketing subsidiary in a high tax country. If Company X wants to minimize its worldwide tax liability, we would expect Company X to a. stop marketing in the high tax rate country b. stop producing in the low tax rate country c. establish a high transfer price when the producing unit sells to the marketing unit d. establish a low transfer price when the producing unit sells to the marketing unit

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