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m In layman's terms
Implementing WP:PIQA (Task 26)
 
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This page only discusses the the academic applications of transfer pricing. That's really only half the story (less than half the story really). Transfer Pricing among multi nationals is a huge issue, and I suspect that there are a number of people looking for information on that, only to find themselves facing supply and demand charts. Can a disccusion of actual transfer pricing occur here?
{{WikiProject Business|Accountancy=Yes|importance=High}}
{{WikiProject Finance & Investment|importance=Mid}}
{{WikiProject Taxation|importance=Mid}}
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== Add a category: important legal cases. ==
: I agree with whomever made the point above. The relation of transfer pricing to business ethics is definitely the more important half of the issue. An economic description of transfer pricing should be in layman's terms, as it is not just economists who are interested in the issue. Article rewrite appropriate? [[User:Caravaca|Caravaca]] 18:42, 15 February 2006 (UTC)


To include, for example, the glaxo Zantac case (Uk v usa) [[User:Riskit 4 a biskit|Riskit 4 a biskit]] ([[User talk:Riskit 4 a biskit|talk]]) 02:13, 19 January 2023 (UTC)
go ahead [[User:Mion|Mion]] 00:53, 16 February 2006 (UTC)


== Article structure ==
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I find your addition confusing:
:Suppose there is a [[monopoly]]. The firm can choose a level of output, but should set the price accordingly, based on the demand curve.
I don't see how it applies to the article. Transfer pricing can be done by monopolists, ologopolists, pure competeitors, and monopolistic competitors. Likewise the MC=MR rule is also more-or-less universal (with some modifications). I think what you are saying is that a monopolist can either set a quantity and take the price dictated by the market, or set the price and take the quantity given by the market. They can set either price or quantity but not both. But more to the point, why is this included? If you think the concept of equating MC to MR is not clearly explained, then either put a link to the [[profit maximization]] article into the text, or add a short summary of the concept. Introducing the idea of monolpolies seems like a bit of a "red herring".- - [[user:mydogategodshat]]


This article is a confused mess. It should be structured to enable a reasonably educated layman to grasp the topic. However, it is written by experts for experts. Transfer pricing is a global phenomenon, so introducing geographical categories does not make sense. [[User:Riskit 4 a biskit|Riskit 4 a biskit]] ([[User talk:Riskit 4 a biskit|talk]]) 02:25, 19 January 2023 (UTC)
:The article is not very clear to me, but it seemed to me that it was concerned with determining a price by a company, so apparently it was not about perfect competition, and the simplest alternative of that is a monopoly. Maybe you should make clearer what market form you are talking about, which variables are given and which are varied, to find what kind of optimum. - [[User:Patrick|Patrick]] 20:55 30 Jun 2003 (UTC)


== Reading and overall reference list?? ==


Section not necessary: there is a reference section for this [[User:Riskit 4 a biskit|Riskit 4 a biskit]] ([[User talk:Riskit 4 a biskit|talk]]) 20:10, 22 January 2023 (UTC)
Transfer pricing can be applied in any form of market, however, you are right that the diagrams would change slightly depending on whether its a monopoly, ologopoly, monopolistic competition, or pur competition. Primarily the slope of the demand and marginal revenue curves would change. But the profit maximizing procedures are still more-or-less the same. The main variant is in the extreme case of perfect competition where the demand curve is perfectly elastic at the market clearing price, and as a consequence MR=D=AR=P. The diagrams I constructed are somewhere in the middle of the market forms continuum. They most closely depict monopolistic competition. But I don't think we should get diverted into the difference between market forms in this article. It would surve little purpose to go into that here (plus I don't want to draw four sets of diagrams). There are other articles that go into the details of profit maximization under monopoly, pure competition, ologopoly, and monopolistic competition. -- [[user:mydogategodshat]]

:Okay, I deleted the part about monopoly. For now, I do not understand enough of the article to decide where to start making edits. But I would expect remarks such as that it does not make any difference for the firm as a whole what the transfer price is, except perhaps for taxes, but that the law may require a realistic price. And that the transfer price could also be determined by pretending that parts of the firm are independent firms, therefore each maximize their own profit. - [[User:Patrick|Patrick]] 22:20 30 Jun 2003 (UTC)

::The relationship between transfer pricing and tax law is extremely complex. I would dread writing that article. [[user:mydogategodshat]]

:::I added a remark about taxes. - [[User:Patrick|Patrick]] 07:31 1 Jul 2003 (UTC)

== Transfer Pricing ==

The article is helful though I would prefer to see the associated math. To be realistic, the model needs to be evaluated in an oligopoly situation. Practically most of the companies that adhere to transfer pricing are mulitnational where there is a conflict of objective about maximising regional profits or overall company profits. Thus shifting profits becomes a primary driver, which can be realised more effeciently in an oligopoly. Regional differences also drive transfer pricing (eg monopoly in certain markets), which is why looking at the overall company as being a price taker is not realistic in multi economy frameworks. Nor is looking at overall monopolies helpful as price makers by defintion violate the arm's length principle. - anisc

:Response:
::1 - I could add the math, but someone would have to check it. My Lagrangian Calculus is a bit rusty.
::2 - I don't know if it is true that all or even most multinationals are ologopolists. Many operate in monopolisticly competitive or monopolistic markets.
::3 - I agree that various regional differences can be important, but how do you include specific complications like that into these simple models. These general models are designed to abstract from such specifics so as to make them simple enough to be understandable.
::4 - In some markets a multinational will be forced to be a price taker, in others they will choose to be a price taker (ie, they will choose to set quantity), and in still others they will choose to be a price maker. We can not make the claim that they will be one or the other in all cases (or even in most cases).
::5 - Monopolists are not necessarily price makers.
:[[User:Mydogategodshat|mydogategodshat]] 19:14, 13 Feb 2004 (UTC)

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Those charts really mess up the formatting of the text, IMO... [[User:Ugen64|ugen64]] 03:44, Feb 25, 2004 (UTC)

:How so? On my browser they don't interact with the text at all. [[User:Mydogategodshat|mydogategodshat]] 05:10, 25 Feb 2004 (UTC)



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im resitting a Masters exam on this in a few says..
ive looked at various international/global marketing books
nobody can explain transfer pricing properly
this article is useless

go here instead
http://www.solbaram.org/articles/clm503.html
for better info
EdgeUHF@Hotmail.com

:The link is a useful article in understanding the practical tax consequences of transfer pricing. The current Wiki article is more theoretical and analytical. Now that you've finished your exam, how about adding some of the tax information to this article? [[User:Mydogategodshat|mydogategodshat]] 17:32, 31 July 2005 (UTC)


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On behalf of those who found this article useful (likely the silent majority): Nice job. Thanks.

==remake==
Well, thats a complete remake of this article, dunno who made it, it needs a cleanup to follow wikistandards, maybe me , i think its worth it, later on.
[[User:Mion|Mion]] 01:09, 12 April 2006 (UTC)
It looks like work in progress.I'll wait a week [[User:Mion|Mion]]

== merge old and new version ==

[[User talk:Mydogategodshat]] , made a request to merge the both versions. [[User:Mion|Mion]] 03:48, 12 April 2006 (UTC)

== This is a copyed text ==

COMMUNITY ECONOMICS
Multinational Operations

Transfer Pricing and Taxation
by Manfred Davidmann

== In layman's terms ==

Here's my explaination in '''layman's terms'''. Could be useful for someone rewriting the article.

Basically Tranfer Pricing is just a way to move your profits and it's commonly done to pay less tax. It's as simple as that! All you have to do is sell your goods at a higher price or lower price so that more profit is made in the country with the lowest tax. Simple. You just raise the price in the place with the higher tax.
[[User:Jago25 98|Jago25 98]] 17:32, 21 April 2006 (UTC)jago25_98

Latest revision as of 16:07, 24 February 2024


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[edit]

To include, for example, the glaxo Zantac case (Uk v usa) Riskit 4 a biskit (talk) 02:13, 19 January 2023 (UTC)[reply]

Article structure

[edit]

This article is a confused mess. It should be structured to enable a reasonably educated layman to grasp the topic. However, it is written by experts for experts. Transfer pricing is a global phenomenon, so introducing geographical categories does not make sense. Riskit 4 a biskit (talk) 02:25, 19 January 2023 (UTC)[reply]

Reading and overall reference list??

[edit]

Section not necessary: there is a reference section for this Riskit 4 a biskit (talk) 20:10, 22 January 2023 (UTC)[reply]

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