Various governments are watching for dumping and transfer pricing abuses and often force companies to charge the ________-the price charged by other competitors for the same or a similar product.
A) gray market price
B) implicit price
C) arm's-length price
D) authorized price
E) contingent price

Question

Quizplus · Accepted Answer

Governments usually force companies to charge an arm's-length price, which is the price charged by other competitors for the same or a similar product. This is done to ensure that companies are not involved in dumping or transfer pricing abuses. A gray market price refers to a price charged for a product that appears to be legitimate but is actually unauthorized by the manufacturer. An implicit price is a price that is indirectly stated or implied. An authorized price is a price that is set by the manufacturer or supplier. A contingent price is a price that is dependent on certain conditions being met.

Various Governments Are Watching for Dumping and Transfer Pricing Abuses