Tio, Inc. a U.S. parent owns two subsidiaries, Ecuador Inc. and Taiwan Inc. The corporate tax rate is 20% in Ecuador and

[answerhappygod]

Tio, Inc. a U.S. parent owns two subsidiaries, Ecuador Inc. and
Taiwan Inc. The corporate tax rate is 20% in Ecuador and 40% in
Taiwan. It costs Ecuador Inc. $25 to assemble each widget. Ecuador
Inc. sells all 1,000 widgets of its production to Taiwan Inc. at a
negotiated price of $65 per unit. Taiwan Inc. sold all 1,000
widgets to independent customers for $90 per unit.
If Tio wants to minimize world-wide taxes, it should direct
Ecuador to increase the price it charges to Taiwan for each
widget.
Taiwan to reduce the price it charges its customers.
Taiwan not to pay any dividends to Ecuador.
Ecuador not to pay any dividends to Taiwan.