Question 1. Please explain both foreign income and repatriation of earnings using three examples that any employee can understand.
a) Include terms like distributed earnings, license fees, and interest and explain where they are used.
Question 2. Next, advise on how the firm can use transfer costs to lower the corporate tax burden, which is 34% in the U.S. and 30% in the foreign location.
a) Include an explanation of foreign income and repatriated earnings composition.
b) Discuss whether or not all the methods named are ethical, and why or why not.
3. Please cite all references.