Transfer pricing does not allow a party to profit from controlling the joint venture's import and export activity.

Question

Quizplus · Accepted Answer

Transfer pricing can allow a party to potentially profit from controlling the joint venture's import and export activity by manipulating the prices for goods and services exchanged between the parties involved in the joint venture. This is why transfer pricing regulations exist to prevent such practices and ensure fair pricing within the joint venture.

Transfer Pricing Does Not Allow a Party to Profit from Controlling