Where the words come from
Why low-income countries welcome direct investment by multinational firms, the long-run focus of foreign direct investment and how slowly it can be withdrawn, the race to the bottom scenario, low-income countries' fear of multinational corporations, and the evidence on where firms locate and how foreign-owned plants comply with environmental laws — Principles of Economics 2e, OpenStax, licensed CC BY 4.0. https://openstax.org/books/principles-economics-2e/pages/31-2-fiscal-policy-and-the-trade-balance and https://openstax.org/books/principles-economics-2e/pages/29-1-how-the-foreign-exchange-market-works and https://openstax.org/books/principles-economics-2e/pages/34-3-arguments-in-support-of-restricting-imports and https://openstax.org/books/principles-economics-2e/pages/32-5-balance-of-trade-concerns. Changes: The US portfolio investor buying UK bonds generalised to money lent to a government by buying its bonds; "a few computer keyboard clicks" shortened; the race to the bottom scenario condensed; the 1950s to 1970s fear of multinationals reworded as an older fear; the list of location factors condensed; "1 to 2%" written out; the reasons firms use one plant design condensed; British spelling.
How transfer pricing between companies in one multinational group decides where profit is taxed, the arm's length rule, HMRC's transfer pricing yield for 2024 to 2025, and the Diverted Profits Tax — Taxing multinationals: how international transfer pricing rules work (2016) and Transfer Pricing and Diverted Profits Tax statistics: 2024 to 2025 (2026), HM Revenue & Customs, Open Government Licence v3.0. https://www.gov.uk/government/publications/taxing-multinationals-transfer-pricing-rules/taxing-multinationals-how-international-transfer-pricing-rules-work and https://www.gov.uk/government/publications/transfer-pricing-and-diverted-profits-tax-statistics-2024-to-2025/transfer-pricing-and-diverted-profits-tax-statistics-2024-to-2025. Changes: "A significant proportion of global trade is made up of transactions between companies that are part of the same multinational group" paraphrased; the arm's length price described as what two independent firms would charge; the transfer pricing yield of £3,387 million for 2024 to 2025 rounded to about £3.4 billion; the Diverted Profits Tax's aim, "to counter aggressive tax planning by some multinationals to divert profits from the UK", paraphrased; the 2023 to 2024 yield of £1,786 million rounded to about £1.8 billion, so the 2024 to 2025 figure is not read as a typical year.
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