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Many serious concerns or issues may arise for corporate stakeholders when dealing with multinational transfer pricing.
Required:
Problem a) Identify two major transfer pricing methods and comment briefly on their relative merits. Which measurement method is best from the viewpoint of the multinational head office management?
Problem b) Explain why it may not be desirable for a multinational company's head office management to dictate setting of transfer prices on subsidiaries. Provide examples to support your arguments.
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