Asked by Dolly Rodriguez on Jun 11, 2024
Verified
_____ is the price charged when two parts of the same multinational corporation, often the parent company and a subsidiary in another country, engage in trade with one other.
A) Absolute pricing
B) Principal pricing
C) Transfer pricing
D) Coupon pricing
Transfer Pricing
The price charged when two parts of the same multinational corporation, often the parent company and a subsidiary in another country, engage in trade with one another.
- Explain the role and importance of transfer pricing in multinational corporations.
Verified Answer
AE
Abner EspinozaJun 17, 2024
Final Answer :
C
Explanation :
Transfer pricing is the term used to describe the price charged in transactions between different parts of the same multinational corporation, such as between a parent company and its subsidiary in another country.
Learning Objectives
- Explain the role and importance of transfer pricing in multinational corporations.
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