Transfer pricing may be a problem for host countries as profits are always removed to the host country. profits may not be accurately recorded as occurring in the host country. as prices are transferred to the local currency losses may occur if exchange takes place on a day when the exchange rate is "low". the cost of exchanging one currency for another is costly in monetary terms and time.
Transfer pricing may be a problem for host countries as profits are always removed to the host country. profits may not be accurately recorded as occurring in the host country. as prices are transferred to the local currency losses may occur if exchange takes place on a day when the exchange rate is "low". the cost of exchanging one currency for another is costly in monetary terms and time.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Transfer pricing may be a problem for host countries
as
profits are always removed to the host country.
profits may not be accurately recorded as
occurring in the host country.
as prices are transferred to the local currency
losses may occur if exchange takes place on a
day when the exchange rate is "low".
the cost of exchanging one currency for another
is costly in monetary terms and time.
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