Problem 1: How exactly does international tax planning assist a U.S. citizen avoid taxes?
Problem 2: For a U.S. multi-location manufacturer, how might they use transfer pricing to reduce their tax liability. Assume a firms steel mill, makes steel which goes to its machining operation, and the machining operation ships parts to an assembly plant. Each of the 3 operations is in different countries with different tax rates.
Problem 3: Discuss what you feel are the legal, ethical and fairness issues involved in doing this type of international tax planning.