Which of the following refers to transfer pricing by a multinational enterprise (MNE)?
A. The process of setting a high price for a good in a market with relatively inelastic demand and setting a low price in a market with relatively elastic demand
B. Setting prices by the company for things that move between the units of the company
C. The act of buying a good at a low price and selling it at a high price
D. Lowering its product prices to undercut foreign competitors and gain a greater market share
Answer: B
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The income approach measures GDP by summing
A) the wealth of households, business and government. B) the incomes paid households for the resources they own. C) the total production of all final goods and services produced in a year within a country's borders. D) C + I + G + NX. E) Both answers A and D are correct.
An increase in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise B) remain unchanged; fall C) remain unchanged; rise D) fall; fall
Economic growth is_____________ improved health conditions in a nation.
A. always needed for B. not necessarily needed for C. always more important than D. negatively related to
Which of the following is true under unregulated monopoly?
a. Monopoly results in more output than under pure competition. b. Monopoly results in a more efficient allocation of resources than competition. c. Monopoly expands the choices available to consumers. d. Monopoly results in lower output and higher prices than competition.