Why Does Transfer Pricing Become Especially Complex When the Global

Multiple Choice

Why does transfer pricing become especially complex when the global market is involved?

A) A global firm can use transfer pricing as a tax-avoidance device and governments dislike such activities.
B) Issues of quality control can be serious, even when divisions of the same firm are involved.
C) Shipping materials across national lines involves payment of duties and taxes, and these become part of the total price of the goods.
D) The temperature and humidity differences between origins and destinations often damage the products.