"F. George McDuffee" wrote in message
...
On Fri, 5 Dec 2008 02:58:29 -0500, "Ed Huntress"
wrote:

You're quite right, and it's so common in world trade that economists even
have a name for it, which I forget at this late hour.

Transfer Pricing.

Ah, right. Thank you. Honda was so blatant about it in China that the
Chinese almost sent them home. d8-)

Common not only internationally but also
interstate in the US for multistate corporations. "Profit" flows
to lowest tax area. Internationally there are "divisions"
established in tax haven countries such as Aruba, that take legal
title but not physical possession of goods in international
transit. Buy low, sell high and any "profit" winds-up in the tax
haven, possibly with tax "losses" on each end.

The magic of high finance...

--
Ed Huntress