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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 35%. Corporate Tax rate in South Africa is 25%. Your cost of production is $100.0 per shoe pair. The market price at which your subsidiary can sell shoe in South Africa is $200.0; 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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