The Timex Group, a large multinational watchmaker, has its headquarters in the Netherlands. It has subsidiaries in many countries, including the Timex Group USA and TMX Philippines, Inc. One particular type of specialty watch is produced in the Philippines for export to the Timex Group USA. Suppose the inverse demand curve for this watch in the United States is

$p=210-2Q$

where $p$ is measured in dollars and $Q$ is measured in thousands of watches per week. These watches are produced at a constant marginal cost of $$50$ per watch by TMX Philippines. Timex USA treats the transfer price charged by TMX Philippines as its marginal cost. Suppose that the Philippines has a lower corporate tax rate than the United States. How would that lower tax rate affect the transfer price that maximizes the overall profit of the Timex Group?

Assume that the transfer price is currently set such that some profits are earned in the U$.$S$.$ by the Timex Group USA and some profits are earned in the Philippines by the TMX Philippines, Inc.

If the Philippines has a lower corporate tax rate than the United States, then TMX Philippines should $$ its transfer price.