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these are two questions. 4. Suppose that affiliate A produces 150,000 handbags for $20 apiece and sells them to affiliate B. Affiliate B, in turn,

these are two questions.

4. Suppose that affiliate A produces 150,000 handbags for $20 apiece and sells them to affiliate B. Affiliate B, in turn, sells these handbags for $50 apiece to an unrelated customer. The tax rate in A's country is 30% and B's country is 40%.

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