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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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, because
these countries...