Economics · International Trade

A multinational corporation sets prices on intra-firm transactions across different countries to shift profits to low-tax jurisdictions. This practice is known as:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Marginal pricing
2Predatory pricing
3Transfer pricing✓
4Dumping

Correct answer

Transfer pricing

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A multinational corporation sets prices on intra-firm transactions across different countries to shift profits to low-tax jurisdictions. This practice is known as:

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A multinational corporation sets prices on intra-firm transactions across different countries to shift profits to low-tax jurisdictions. This practice is known as:

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