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Suppose Chinese and Thai corporate income tax rates are both higher than the US rate. Explain how Starbucks could use transfer pricing to increase after-tax

Suppose Chinese and Thai corporate income tax rates are both higher than the US rate. Explain how Starbucks could use transfer pricing to increase after-tax profit by moving profits from its Chinese subsidiary to the US parent company. What would prevent the company from using the same strategy to move profits from its Thai operations to the US parent?

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