Please, use the formulas as well and the attachment to support the questions. The answers should be detailed and robust.

1. Explain the difference, in detail, between selling price and transfer price. Give an example.

2. Why is transfer price important for a MNE? Please provide three examples.

3. If corporation 2 is wholly owned by corporation 1, what two methods could corporation 1 use to expatriate profits from corporation 2? Please explain the two methods in detail.

TORMULAS ZEQUATIONS Value creation = Primary Processes + Support Processes " " THRU DIFFERENTIATION (SGCONDARY) COMPLEXITY = INCREATE COSTS ALL COSTS MUST BE ABSOREED MNES ARE CORPORATION ENTITIES