The Analysis Of Transfer Pricing Of The Enterprises

With china's successful entry into WTO, more and more enterprises go out to face world-widecompetition. But they seldom use the transfer pricing in their business activities, as they can'tfind a way to use it. This reality make the study of transfer pricing thus becomes valuable andsignificant. This paper has arrived at corresponding strategy for transfer pricing, combined withthe enterprises' inside and outside environments.First, this paper summarized the state of study on this topic, then summed up the relatedknowledge of transfer pricing, and came to the conclusion that there were two factors influencedthe transfer pricing decisions. One was the environment about the enterprise;the other was theenvironment about the country which was invested to. Inside the environment about theenterprise, market was the most important. So in chapter three, we analyzed the transfer pricingin different markets, like non-market, perfect competition, monopoly, monopolistic competitionand oligopoly. Combined with the inside and outside environments, the enterprise environmentsin the thesis were divided into four forms as collective, coordinative, cooperative and discrete.The paper proposed different transfer pricing for four kinds of enterprises, which serves well asthe guiding principle for transfer pricing practice.