Multinational operations tax doubt

CFA Level II FRA
#1

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Relative to its domestic tax rate. Triofinds effective tax rate is most likely

  1. Lower
  2. Same
  3. Higher

I don’t understand why the answer is lower. Since Auelio has a higher rate the effect of foreign subsidiaries will be -

Domestic tax = 34
Effect of subsidaries= -(-1)
Total = 35%

That is my understanding. Where am I going wrong?