K-Roo Corp., an Australian firm, has issued EUR-denominated Eurobonds.

To hedge the exchange rate risk associated with these bonds, the optimal strategy would be to

Select one:

a. invoice exports to its French customer in EUR.

b. invoice imports from its French supplier in EUR.

c. invoice exports to its French customer in AUD.

d. invoice imports from its French supplier in AUD.

e. None of these.

Which internal financial transfer mechanism is the least likely to attract government attention under the suspicion of tax avoidance?

Select one:

a. Fees and royalties

b. Transfer pricing

c. Reinvoicing centers

d. Intercompany loans

e. Leading and lagging

Which of the following is true about international transfers in the context of multinationals and their subsidiaries?

Select one:

a. Royalty payments between parents and subsidiaries generally do not risk regulatory scrutiny

b. Dividends are among the most common ways of transferring money between subsidiaries and parent companies

c. Leading and lagging involves the MNC setting up a subsidiary to lead the market

d. Reinvoicing centers would be best set up in low tax countries

e. None of these options is correct

f. Two or more of these options is correct