Read the article titled, "What Manufacturers Need to Know about Transfer Pricing". Next, assess the major potential problems that a multinational firm could encounter when using negotiated transfer pricing instead of market-based transfer pricing. Provide one recommendation to the firm on how to avoid these problems.
• Evaluate the validity of the accounting ethics of creating, initiating, or adjusting transactions to repatriate excess cash for multinational firms in transfer pricing decisions and suggest one way that this practice may be implemented.