How can transfer pricing be used to shift income around the world?
What will be an ideal response?
Setting a low transfer price increases the income of the affiliate that is purchasing the good because it lowers the cost of the good. The affiliate that is selling the good has lower revenue and hence lower income. Setting a high transfer price decreases the income of the affiliate that is purchasing the good because it increases the cost of the good. The affiliate that is selling the good has higher revenue and hence higher income.
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A market segment or country market characterized by weak competition may be a segment to avoid
Indicate whether the statement is true or false
A market researcher who uses multidimensional scaling (MDS) will:
A) attempt to estimate market size by analogy. B) ask respondents to rate a particular product or brand in terms of multiple characteristics or attributes. C) ask respondents to evaluate product or brand pairs in terms of similarity. D) attempt to determine the combination of product features that create the greatest utility for consumers. E) conduct a focus group.