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Unformatted text preview: increased competition, government regulation, rapidly increasing inflation, fluctuating exchange rates, global marketers must spend time planning a pricing strategy. Transfer pricing allows for a smooth exchange of goods across countries. In situations where the transportation of goods is involved in the transaction, the transfer pricing may include both a fixed price per unit transferred, plus additional charges to cover the cost of shipping. This model is especially helpful when the transfer takes place between a parent company and a subsidiary. The larger entity can arrange the shipping through a discounted shipping plan that the smaller entity may not be able to access. The end result is that the transfer pricing makes it possible to move the goods with the smallest amount of expense to the company as a whole....
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This note was uploaded on 01/02/2012 for the course MAR 456 taught by Professor Tucker,f during the Spring '08 term at Syracuse.
- Spring '08