Transfer pricing is a term that is often heard in the world of
trade and commerce. If you are looking to start a business, it is
important that you know about the meaning of this term when you do
so. Basically, the term transfer pricing indicates the monetary
value that is attached to the transfer of services or goods between
two trading parties. Therefore, the concept of transfer pricing
denotes the price that is paid for the goods that are transferred
from one specific economic unit to the other, considering that
these two units are located in two different countries and yet
belong to same global firm.
A transfer price is therefore the amount of money that is
charged for a specific transaction. In cases of foreign
transactions, the transfer price is the concrete price that is
charged between allied enterprises. Issues related to transfer
pricing may arise when the different worldwide commercial
establishments that are based in distinct jurisdictions decide
