Optimized transfer-pricing model for Asia Pacific
Name
773578230-MIT.pdf
Description
Full printable version
Size
2.37 MB
Format
Adobe PDF
Checksum (MD5)
3a7db44688481ac3287c67ffc0af707d
Author(s)
Liang, Kelly (Kelly JieRu)
Advisor(s)
Jonathan Byrnes.
Date Issued
2011
Publisher
Massachusetts Institute of Technology
Abstract
Transfer price is an important field of study for profit maximization. As more multinational enterprises (MNEs) are involved in global trading in the recent decades, the objective to set an optimized transfer price is more crucial than ever since the difference in tax rates and tariffs have sophisticated impacts on the overall profit for the corporation. In this thesis, which focuses primarily on Asia Pacific, I will review historical transfer pricing methods, explore the factors that affect transfer price determination, and construct a mathematical model to determine the optimal transfer price by comparing and contrasting the different transfer pricing methods with data from a hypothetical company. Particularly, I will illustrate the effects of taxes and tariffs on the determination of transfer price. Consequently, I will perform sensitivity analysis with respects to tariffs, taxes, and shipping costs. The thesis will conclude with recommendations on the optimized transfer pricing methods and insights on the implications for the method.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2011.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 35).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
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reproduction or distribution in any format is prohibited without written
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