If the portions of the firm's foreign operations in higher-tax-rate countries grew more rapidly than foreign operations in lower-tax-rate countries, the company may seek out more tax effective ways of operating abroad through all of the following means except:

a. Assess whether transfer prices or cost allocations can be adjusted to shift income
from high-tax-rate to low-tax-rate jurisdictions.
b. Shift from domestic to foreign borrowing to increase deductions for interest against
foreign-source income.
c. Shift from debt to equity financing of foreign operations to increase interest deductions
against foreign-source income.
d. Shift some operations, like marketing, to the United States where the average tax rate is lower.


C

Business

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