QUESTION $5$

A Multinational Enterprise $($MNE$),$ headquartered in Country A has subsidiaries in countries $B$ and $C.$ The MNE manufactures cars and sells it to customers worldwide. A functional analysis is provided below.

$\backslash$table$[[$Country$,$Tax Rate,Entity Name,Activity,Price$],[$A$,5\%,$MNE HQ$,\backslash$table$[[$Keeps intellectual$],[$Property $($IP$),$ provides$],[$legal and financial$],[$oversight to all$],[$subsidiaries$]],\backslash$table$[[$receives $$1m$ from$],[$MNE Sub C as royalty$],[$for IP and $$3m$ from$],[$MNER SubB $$0\mathrm{.}5m$