This paper analyzes effects of the corporation tax rates of countries on firms f location selections using the transfer pricing system. Reduction of transportation costs makes firms f production activities expand to across international borders. This expansion incurs harsh price competition...

Purpose: In decentralized organizations (today a great majority of the large multinational groups), much of the decision-making power is in its individual business units-BUs-. In these cases, the management control system (MCS) uses transfer prices to coordinate actions of the BUs and to...