A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to

Question

Quizplus · Accepted Answer

The study shows that international transfer pricing is primarily used to minimize taxes, which suggests that MNCs strategically set prices between their units to reduce their tax burden. The other options (evaluate performance, increase profits, improve communication) may also be factors, but they are not identified as the primary purpose.

A Study of 79 MNCs Revealed That International Transfer Pricing