请再帮忙解释下C选项？

问题如下：

Question An analyst gathers the following information from a company's notes to the consolidated financial statements:

If there is no change in applicable tax rates, compared to Year T – 2, in Year T – 1 the company's mix of profits earned most likely:

选项：

A.A.shifted to countries with lower marginal tax rates. B.B.remained unchanged. C.C.shifted to countries with higher marginal tax rates.

解释：

Solution

1. Incorrect because the change in mix of profits is estimated based on the effective tax rate that decreased from 27.0% in Year T – 2 to 26.5% in Year T – 1 (instead of considering the effect of tax rates in foreign jurisdictions).

2. Incorrect because the change in mix of profits is estimated based on the income tax using the statutory tax rate that remained unchanged (instead of considering the effect of tax rates in foreign jurisdictions).

3. Correct because "[c]hanges in the effective tax rate impact of foreign taxes could be caused by changes in the applicable tax rates and/or changes in the mix of profits earned in different jurisdictions." The effect of tax rates in foreign jurisdictions increased from 1.8% in Year T – 2 to 2.3% in Year T – 1. If the applicable tax rates remained unchanged, the mix of profits earned is shifting to countries with higher marginal tax rates.

Multinational Operations

• describe how multinational operations affect a company’s effective tax rate