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You are a shoe manufacturer is USA exporting to South Africa. You have set up your own subsidiary in South Africa. Corporate Tax Rate in
You are a shoe manufacturer is USA exporting to South Africa. You have set up your own subsidiary in South Africa. Corporate Tax Rate in USA is Corporate Tax rate in South Africa is Your cost of production is $ per shoe pair. The market price at which your subsidiary can sell shoe in South Africa is $; You first want to sell your merchandise to your subsidiary who will then sell it to the customers in South Africa. What should be your price to your subsidiary?
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