Transfer pricing may be a problem for host countries as A) profits may not be accurately recorded as occurring in the host country. B) the cost of exchanging one currency for another is costly in monetary terms and time. C) prices are transferred to the local currency resulting in losses if exchange takes place on a day when the exchange rate is 'low'. D) profits are always removed to the host country
Transfer pricing may be a problem for host countries as A) profits may not be accurately recorded as occurring in the host country. B) the cost of exchanging one currency for another is costly in monetary terms and time. C) prices are transferred to the local currency resulting in losses if exchange takes place on a day when the exchange rate is 'low'. D) profits are always removed to the host country
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
Problem 2BIC
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can you answer question 33, please?
33) Transfer pricing may be a problem for host countries as
- A) profits may not be accurately recorded as occurring in the host country.
- B) the cost of exchanging one currency for another is costly in monetary terms and time.
- C) prices are transferred to the local currency resulting in losses if exchange takes place on a day when the exchange rate is 'low'.
- D) profits are always removed to the host country
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