IGNOU IBO 1 2015 2016 - TNCs do not use transfer pricing.

Question

TNCs do not use transfer pricing.

10 Nov 2017

Answer :

Word Count : 190

TNCs often usc shadow transfer prices’at marginal cost to clear transactions amongst
their divisioni According to this view, the transfer prices set by TNCs are efficient and any attempt to regulate them will create inefficiency and misallocation. The optimal policy under this approach is to reniove all distortions and to permit TNCs to set efficient transfer prices However, this view

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