The price paid by an importing or buying unit of a multinational firm to an exporting unit of the same firm is known as
A)marginal price.
B)international transfer price.
C)transaction risk.
D)fixed price.

Question

Quizplus · Accepted Answer

The price paid by an importing or buying unit of a multinational firm to an exporting unit of the same firm is known as an international transfer price. This is the price at which goods and services are transferred between different entities or divisions within the same company. It is used to determine the profits made by each division or entity and to avoid tax implications in different countries.

The Price Paid by an Importing or Buying Unit of a Multinational