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    Transfer Pricing Rule.

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    Should setting a transfer pricing rule should differ between national and multinational companies? What would be the pros and cons?

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    https://brainmass.com/business/multinational-corporations/transfer-pricing-rule-448324

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    Should setting a transfer pricing rule should differ between national and multinational companies? What would be the pros and cons?

    No, if the transfer pricing rule is applied then that leads to goal congruence decision making and so should be used by national and multinational companies. The overall principle is that the transfer price should be chosen so that each division manager, when striving to maximize his own division's profit makes the decision that ...

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