The process of shifting profits among countries using intrafirm prices is known as:

Question

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Transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort taxable income, tax authorities in many countries can adjust intrafirm transfer prices that differ from what would have been charged by unrelated enterprises dealing at arm's length (the arm's length principle). The goal of these adjustments is to prevent profit shifting and ensure that each country can tax the profits generated within its jurisdiction.

The Process of Shifting Profits Among Countries Using Intrafirm Prices