The most important influence on transfer pricing decisions is

Question

Quizplus · Accepted Answer

Market conditions in the foreign country have a significant impact on transfer pricing decisions as companies want to maximize profitability and minimize taxes by setting prices that are competitive in the local market. Exchange controls and U.S. export incentives may have some impact, but they are not as crucial as market conditions. Management of cash flows may also be a factor but is typically not the most important one.

The Most Important Influence on Transfer Pricing Decisions Is