There are a series of key drivers behind transfer pricing decisions. The most important of these drivers is thought to be:
A) competition in the foreign country.
B) economic conditions in the foreign country.
C) price controls.
D) exchange controls.
E) market conditions in the foreign country.

Question

Quizplus · Accepted Answer

Market conditions in the foreign country are the most important driver behind transfer pricing decisions. This includes factors such as supply and demand, competition, and pricing of similar products or services in the market. Other drivers such as economic conditions or price and exchange controls may also play a role, but they are not as significant as market conditions.

There Are a Series of Key Drivers Behind Transfer Pricing