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Transfer Pricing Assume that a multinational corporation (MNC) is (i) shipping product from Brazil (Country B)...

Transfer Pricing

Assume that a multinational corporation (MNC) is (i) shipping product from Brazil (Country B) to Australia (Country A), and (ii) the tax rate in Country B < tax rate in country A, in answering the following questions:

  1. If MNC managers wish to minimize (taxes), how should they go about setting the transfer price [Provide thumb-rules as part of your answer]
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