Q. International aspects to transfer pricing?

The following issues can influence international transfer pricing decisions.

• Exchange rates e.g. fluctuations in global currency and consequently selling prices.
• Import tariffs or quotas e.g. import taxes will affect the selling price, also restrictions on the volume of goods imported or exported could be imposed by government or trade bodies.
• Taxation e.g. deviations in international direct and indirect taxation rates.
• Worldwide quality and prices available from external suppliers.
• Other international legislation e.g. repatriation of profits or funds, consideration of minority shareholders etc.