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What is the significance of transfer pricing in FDI regulations? a. Transfer prices can be used to indirectly transfer profits out of a host country,

What is the significance of transfer pricing in FDI regulations? a. Transfer prices can be used to indirectly transfer profits out of a host country, so they are regulated by host country tax authorities * b Transfer prices provide a reliable way for governments to stabilize currency fluctuation * c Many countries impose specific transfer prices on foreign enterprise to limit the amount of losses the company may report d. Transfer prices often result in significant balance of payment deficits and so are regulated by host governments e Transfer prices are often determined by governmental agencies in host countries with a radical FDI philosophy

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