A Canadian company has subsidiaries in France, England, Canada, and in the USA.The company is somewhat vertically-integrated in that the Canadian subsidiary sells some of its output to the USA subsidiary which further processes the material.If the market is fully-competitive, which price is best for goal congruence?

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In a fully-competitive market, the market-based price is the best choice for goal congruence as it ensures that each subsidiary is selling at the highest possible price that the market is willing to pay. This promotes efficiency and profitability for the company as a whole. Choosing full cost no markup may result in the company not receiving the highest possible revenue from the market, and choosing negotiated or distress prices may lead to unequal and unfair pricing among the subsidiaries, causing internal conflicts and reducing overall efficiency.

A Canadian Company Has Subsidiaries in France, England, Canada, and in the USA.The