Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2011. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 35). / 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. / by Kelly Liang. / M.Eng.in Logistics
| Identifer | oai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/68894 |
| Date | January 2011 |
| Creators | Liang, Kelly (Kelly JieRu) |
| Contributors | Jonathan Byrnes., Massachusetts Institute of Technology. Engineering Systems Division., Massachusetts Institute of Technology. Engineering Systems Division. |
| Publisher | Massachusetts Institute of Technology |
| Source Sets | M.I.T. Theses and Dissertation |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 35 p., application/pdf |
| Rights | M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission., http://dspace.mit.edu/handle/1721.1/7582 |
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