The Research On Chinese Enterprises' Transfer Price Strategy In Multinational Operations

In the process of the world economy integration, transfer price is one of the important methods for the multinational companies to realize their global strategies. There are great theoretic meanings and practical meanings on the research of transfer price. This paper introduces the basic conceptions of transfer price firstly. Then it analyses the conditions and effects of multinational companies' using of transfer price in China, and also revels their strategies' use for reference to Chinese enterprises. This part mainly deals with the policies of China tax regulations and the practices of multinational companies. The focus of this paper is to discuss how to use transfer price in Chinese enterprises' multinational operation. After introducing the situation of Chinese enterprises' using of transfer price, this paper tries to explain the reasons of such conditions. Then, from the view of Chinese enterprises, this paper expatiates on the following issues: 1. Definitude the aim of enterprises' operation and realize them by transfer price, mainly discussing the aspects of taxes reducing, market exploring and technology protecting. 2. Optimize the profit and avoid corresponding risks by using transfer price in a specific country. This part deals with the country's macroeconomics circumstance and international trade conditions. 3. Some general suggestions on the using of transfer price, such as the preparations on the documents and the management of the company.