Cash management is critical in a multinational firm's operations.
Research and answer the following...

Question

Cash management is critical in a multinational firm's operations. 
Research and answer the following questions:

How can multinational firms reduce their tax liabilities? 
Which countries are ideal investment destinations for these firms to reduce 
their tax liabilities? 
What are the different forms of countertrades in different countries? Give 
three examples other than the ones mentioned in the textbook.

Robert · Accepted Answer

2 pages 
Cash management is critical in a multinational firm's operations. Research and answer the following 
questions: 
 How can multinational firms reduce their tax liabilities? 
Solutions: As we have already told that multinational firms, they do have presence in many 
countries. There are countries, who all invite the multinationals to invest in their countries in order 
to create job employment and a proper market in which the company is will operate. The company 
will design the model in such a way that the company does not pay tax finally. For example, 
Microsoft has its Intellectually Property office in Ireland, because it has a better tax rate. The US 
subsidiary of Microsoft pays a royalty to the Irish subsidiary, hence US income get reduced and no 
need to pay tax to government. Here transfer pricing pays a great role for the corporate.  
 Which countries are ideal investment destinations for these firms to reduce their tax 
liabilities? 
Solutions: We may say all the developing countries are the ideal investment destinations,

Cash management is critical in a multinational firm's operations. Research and answer the following questions: How can multinational firms reduce their tax liabilities? Which countries are ideal...

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