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FIDM Global Financial Strategy & High Tax Environments Discussion

 

Read chapter 15 in the class text and respond to following questions:

1. State and describe in detail, a concept (strategy) where an MNC may allocate debt differently across its various foreign subsidiaries to reduce tax liabilities in high tax environments.

2. State and describe in detail, a concept/strategy involving intra-firm transactions that the MNC uses to reduce tax liabilities in high tax environments. This concept/strategy describes the amount paid by one unit of a company (domestic or international) for goods or services purchased from another unit of the same firm.

3. State and describe in detail, a concept/strategy that an MNC may use to change its country of incorporation to reduce its effective global tax liabilities by reincorporating in a lower-tax jurisdiction.

Class text: https://drive.google.com/file/d/1o-lX-1h8rl684pMb3…