ECONOMICS

Detailed explanation-1: -Transfer pricing is an accounting and taxation practice that allows for pricing transactions internally within businesses and between subsidiaries that operate under common control or ownership. The transfer pricing practice extends to cross-border transactions as well as domestic ones.

Detailed explanation-2: -In short, transfer pricing refers to the amount of money that is exchanged when two or more related company entities transact with each other. 2.

Detailed explanation-3: -The market-based transfer price is the market price of an item in an uncontrolled market. Market-based transfer prices are used when there are no comparable market transactions involving the transfer of ownership for goods or services, which means that specific identification cannot be applied.

Detailed explanation-4: -The price at which a willing buyer and a willing unrelated seller would freely agree to transact or a trade between related parties that is conducted as if they were unrelated, so that there is no conflict of interest in the transaction.