Multinational Transfer Pricing And Financial Capabilities To Study

Internationa] transfer pricing is the price system in the internal trade of the multinational corporations (MNC). It can be looked up as the lubricant for the internal trade of the MNC. It can effectively reduce and even eliminate the effects of some factors which the corporations will faced with in the procession of the international operation, such as the international tax, the wave of the interest rate, the restriction of the foreign exchange and the price, the political risk and so on. And it can achieve to manage the capital and accommodate the profit. But international transfer pricing can not be used all at one's pleasure and should be limited by the factors inside and outside the MNC. With the developing of the economy and the gradual perfection of the institution, MNC can use the Mailbox Company in the tax haven to realize the certain financial function of the international transfer pricing. To exert the financial functions in a better way, MNC should build an international transfer pricing system and make it be a subsidiary strategy of the whole financial strategy of the MNC. Meanwhile we should design some supplementary system in the whole financial strategy of the MNC to effectively promote the financial functions of the international transfer pricing to briftg into play.It plays a vital role for the international transfer pricing in the financial strategy management of the MNC. To be an important decision-making variable of the financial management, the international transfer pricing is one of the most primary financial questions the MNC faced with nowadays.