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TRANSFER‐PRICING AND OUTPUT DECISIONS: THE DYNAMIC INTERACTION
Author(s) -
Jensen Oscar W.
Publication year - 1986
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1986.tb00236.x
Subject(s) - multinational corporation , transfer pricing , microeconomics , economics , transfer (computing) , industrial organization , computer science , finance , parallel computing
This paper is concerned with the dynamic interactions between output and transferprice decisions in a three‐country model for a multinational firm when profits taxation and ad valorem tariffs are applied simultaneously. A numerical example is used to illustrate that the three‐country model modifies considerably conclusions reached in the traditional two‐country, two‐goods framework.