What are products that are created domestically and transported for sale abroad?

A) Dumped goods
B) Exports
C) Imports
D) Buy backs
E) Domestic goods


Answer: B
Explanation: B) Exports are goods that are made in a country and sold in another country.

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Division A transfers a profitable subassembly to Division B, where it is assembled into a final product. A is located in a European country that has a high tax rate; B is located in an Asian country that has a low tax rate. Ideally, (1) what type of before-tax income should each division report from the transfer and (2) what type of transfer price should Division A set for the subassembly?  Division A IncomeDivision B IncomeTransfer Price set by AA.LowLowLowB.LowHighLowC.LowHighHighD.HighLowHighE.HighHighLow

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