A study of 79 MNCs revealed that international transfer pricing from one country unit to another is primarily used to
A) evaluate performance.
B) minimize taxes.
C) control imports.
D) improve communication.
E) move corporate headquarters.

Question

Quizplus · Accepted Answer

The study revealed that international transfer pricing is primarily used to minimize taxes. This is because transfer pricing allows companies to allocate profits between subsidiaries in different countries in order to take advantage of differences in tax rates and therefore reduce overall tax liabilities.

A Study of 79 MNCs Revealed That International Transfer Pricing