Explain the three basic approaches to transfer pricing, Operation Management

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Explain the three basic approaches to transfer pricing

Problem

What is transfer pricing? Give an example using the info below:

US exporter is Heinz Company.? Brazilian?subsidiary is Heinz Brasil S.A.? Product is ketchup. US tax rate is 20%. Brazilian?tax rate is 40%.

Identify and explain the three basic approaches to transfer pricing. Identify and explain three criteria that a company might consider to decide on the best approach to use.

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Operation Management: Explain the three basic approaches to transfer pricing

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