Question: 2 . ABC Company has subsidiaries in Countries ( X , Y ) , and ( Z ) . Each manufactures
ABC Company has subsidiaries in Countries X Y and Z Each manufactures one product at a cost of mathbf$ per unit that it sells to both of the other subs. Each sub then sells the products in their local market for $ per unit. In each country import duties are levied on the price and are deductible for income tax purposes. The tax rates and duties for each company are as follows: For each of the six pairs mathbfX to mathbfYmathbfX to mathbfZmathbfY to mathbfXmathbfY to mathbfZmathbfZ to mathbfXmathbfZ to Y does ABC Company prefer the lowest transfer price possible or the highest transfer price possible?
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