There are a series of key drivers behind transfer pricing decisions of U.S.-based multinationals.Which of the following is not one of those drivers?
A)U.S.federal income taxes
B)Customs duties
C)Reasonable profit for foreign affiliate
D)Political stability
E)Taxation in the foreign country

Question

Quizplus · Accepted Answer

Political stability is not typically considered a direct driver of transfer pricing decisions. Transfer pricing primarily focuses on tax optimization, regulatory compliance, and ensuring appropriate profit allocation among different parts of a multinational corporation, rather than being influenced by a country's political stability.

There Are a Series of Key Drivers Behind Transfer Pricing