For the MNE a repositioning of profits helps the firm realize greater after-tax profits from the same amount of sales.

Name: For the MNE a repositioning of profits helps the firm realize greater after-tax profits from the same amount of sales.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Repositioning of profits involves strategies such as transfer pricing and tax planning, which can effectively reduce the tax burden of MNEs and increase their after-tax profits without increasing their sales. Therefore, the statement is true.

For the MNE a Repositioning of Profits Helps the Firm