A comprehensive guide written specially for executives of multinational enterprises, this volume presents a practical, in-depth discussion of the transfer pricing problem. The author explains the significance of designing appropriate transfer pricing policies and shows how existing policies can be modified and improved to help a firm achieve global objectives and maximize global profits. Detailed guidelines for both short- and long-range planning activities are presented, along with invaluable information about the relationships, interaction, and conflict among the tax regulations and laws of different countries.
Abdallah organizes his discussion around a number of key questions regarding the nature and objectives of transfer pricing policies. He demonstrates the reasons international transfer pricing decisions are more complicated than other pricing decisions and examines the factors and variables that affect the transfer pricing policies of multinational enterprises. The book goes on to address the ways in which international transfer prices and pricing policies affect the management decision-making process, especially in the resource allocation arena. Finally, Abdallah offers both advice on evaluating the pros and cons of various policies and sound guidelines for firms which seek to reduce their international transaction costs by minimizing border and income taxes, foreign exchange risks, and costs arising from policy clashes between home and host country agencies. Numerous tables and figures illustrate points made in the text. Indispensable for managers and executives of multinational firms, this book offers the first clearcut exposition of the complex issues involved in international transfer pricing.
