Transfer pricing has been used by multinational corporation

Assignment Help Financial Management

Reference no: EM131562478

1. A documentary credit is issued to importer to pay exporter for an amount of GBP 40,000 payable with drafts drawn at 30 days from the date of shipment. Document is presented with bills of lading. This is an example of:

a. Export netting

b. Swap contract

c. Letter of credit

d. Future contract

And why?

2. Transfer pricing has been used by multinational corporation to:

a. Minimize tax payments in foreign countries

b. Minimize import tariffs

c. Minimize foreign exchange controls

d. All of the above are correct.

And why?

Reference no: EM131562478

Questions Cloud

Project incorrigible has an initial cost : Project Incorrigible has an initial cost, and then generates cash inflows of $50 a year for the next five years.

Expected long-run growth rate for this stock : If the expected long-run growth rate for this stock is 4.25 percent and if investors require an 18 percent rate of return, what is the price of the stock today?

Interest rates on eurodollar loans may be lower : Interest rates on Eurodollar loans may be lower than those on loans in the U.S. because:

Call option with strike price less than current spot price : A call option with a strike price less than the current spot price is said to be _____.

Transfer pricing has been used by multinational corporation : Transfer pricing has been used by multinational corporation to.

An advantage of netting of multinational corporation : An advantage of netting of a multinational corporation and its subsidiaries is that it:

What will be the value of the pound payable in us dollars : What will be the value of the pound payable in U.S. dollars, if the U.S. firm exercises the option?

Arithmetic average return on each stock over period : What was the arithmetic average return on each stock over this period?

Case study taco bell and how to build a business case : Case study "Taco Bell" and "How to Build a Business Case" Build a business case template

User Account

All Pages