Countries differ in how they tax foreign-source income of their domestic MNCs.

Multiple Choice

• Therefore, different forms of structuring a multinational organization within a country can result in different tax liabilities for the firm.

• But all countries tax domestic income of their domestic MNCs in the same way.

• all of the options

• However, due to tax treaties and foreign tax credits, this is not an issue for a U.S.-based MNC.