What is a transfer price, and can a government regulate it? What difficulties and motives does a parent multinational firm face in setting transfer prices?
Answer to relevant QuestionsHow does the diversification of a portfolio change its expected returns and expected risks? Is this in principle any different for internationally diversified portfolios? What types of risk are present in a diversified portfolio? Which type of risk remains after the portfolio has been diversified? The benefits of portfolio construction, domestically or internationally, arise from the lack of correlation among assets and markets. The increasing globalization of business is expected to change these correlations over ...An investment agreement spells out specific rights and responsibilities of both the foreign firm and the host government. What are the main financial policies that should be included in an investment agreement? The United States has a law prohibiting U.S. firms from bribing foreign officials and business persons, even in countries where bribery is a normal practice. Some U.S. firms claim this places the United States at a ...
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