intra-group trading within multinational is trending and is a very important part of business today. This...
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intra-group trading within multinational is trending and is a very important part of business today. This intra-group trade is aimed at promoting global trade competitiveness. Within this competitive environment, companies within group usually trade with each other and therefore maybe required to set fair and arm length prices for goods and services. Such prices may give benefits other than the mere value for goods and services. Required: a. Identify and explain three objectives of transfer pricing. b. Discuss three 4 approaches that can be used to fix a transfer price in a company. c. Identify and explain four (4) merits and demerits of b above intra-group trading within multinational is trending and is a very important part of business today. This intra-group trade is aimed at promoting global trade competitiveness. Within this competitive environment, companies within group usually trade with each other and therefore maybe required to set fair and arm length prices for goods and services. Such prices may give benefits other than the mere value for goods and services. Required: a. Identify and explain three objectives of transfer pricing. b. Discuss three 4 approaches that can be used to fix a transfer price in a company. c. Identify and explain four (4) merits and demerits of b above
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a Three objectives of transfer pricing are 1 Profit Allocation Transfer pricing helps allocate profits among different entities or divisions within a ... View the full answer
Related Book For
International Business
ISBN: 9781292274157
8th Edition
Authors: Simon Collinson, Rajneesh Narula, Alan M. Rugman
Posted Date:
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