Question: What is transfer pricing? Create an example using the info below: US exporter is Heinz Company. Braziliansubsidiary is Heinz Brasil S.A. Product is ketchup. US

What is transfer pricing? Create an example using the info below:

US exporter is Heinz Company. Braziliansubsidiary is Heinz Brasil S.A. Product is ketchup. US tax rate is 20%. Braziliantax rate is 40%.

Identify and explain the three basic approaches to transfer pricing. Identify and explain three criteria that a company might consider to decide on the best approach to use.

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