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1. Briefly explain four reasons why transfer pricing is important for multinational corporations. 2. Identify one of the main advantages and two behavioural implications of
1. Briefly explain four reasons why transfer pricing is important for multinational
corporations.
2. Identify one of the main advantages and two behavioural implications of the use of thefollowing transfer pricing methods:
a. Full Cost Based Transfer Price
b. Negotiation Based Transfer Price
Note:There should be two advantages and four behavioural implications in total - i.e.
each transfer pricing method will have one advantage and two behavioural implications.
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