MNCs can often decrease their tax liability through
(a) use of more capital-intensive techniques.
(b) use of transfer pricing.
(c) use of more foreign input sources.
(d) bargaining with the host country.
(e) none of the above.
B
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The condition that states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency is called
A) the purchasing power parity condition. B) the interest parity condition. C) money neutrality. D) the theory of foreign capital mobility.
The implementation of the assembly line is an example of how
A) changes in the organization of production improve productivity. B) neutral technical change improves productivity. C) non-neutral technical change can decrease productivity. D) labor saving technical change increases economy-wide unemployment.