Talk:Transfer pricing/Archives/2013
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Transfer Pricing
The article is helful though I would prefer to see the associated math. To be realistic, the model needs to be evaluated in an oligopoly situation. Practically most of the companies that adhere to transfer pricing are mulitnational where there is a conflict of objective about maximising regional profits or overall company profits. Thus shifting profits becomes a primary driver, which can be realised more effeciently in an oligopoly. Regional differences also drive transfer pricing (eg monopoly in certain markets), which is why looking at the overall company as being a price taker is not realistic in multi economy frameworks. Nor is looking at overall monopolies helpful as price makers by defintion violate the arm's length principle. - anisc
- Response:
- 1 - I could add the math, but someone would have to check it. My Lagrangian Calculus is a bit rusty.
- 2 - I don't know if it is true that all or even most multinationals are ologopolists. Many operate in monopolisticly competitive or monopolistic markets.
- 3 - I agree that various regional differences can be important, but how do you include specific complications like that into these simple models. These general models are designed to abstract from such specifics so as to make them simple enough to be understandable.
- 4 - In some markets a multinational will be forced to be a price taker, in others they will choose to be a price taker (ie, they will choose to set quantity), and in still others they will choose to be a price maker. We can not make the claim that they will be one or the other in all cases (or even in most cases).
- 5 - Monopolists are not necessarily price makers.
- mydogategodshat 19:14, 13 Feb 2004 (UTC)
Those charts really mess up the formatting of the text, IMO... ugen64 03:44, Feb 25, 2004 (UTC)
- How so? On my browser they don't interact with the text at all. mydogategodshat 05:10, 25 Feb 2004 (UTC)
im resitting a Masters exam on this in a few says.. ive looked at various international/global marketing books nobody can explain transfer pricing properly this article is useless
go here instead http://www.solbaram.org/articles/clm503.html for better info EdgeUHF@Hotmail.com
- The link is a useful article in understanding the practical tax consequences of transfer pricing. The current Wiki article is more theoretical and analytical. Now that you've finished your exam, how about adding some of the tax information to this article? mydogategodshat 17:32, 31 July 2005 (UTC)
On behalf of those who found this article useful (likely the silent majority): Nice job. Thanks. I did not find it useful. it is full of confused blahblah. I am editing it right awayTransferpricer (talk) 11:16, 19 February 2013 (UTC)