International Transfer Pricing : Now Publishers : 9781601988942 : 23 Dec 2014 : Taxable income for a multinational enterprise (MNE) is determined on the basis of separate accounting where the incomes of a U.S. parent and its foreign subsidiaries are determined separately. When goods or services are transferred between related entities the transfer price - the price at which the good or service is transferred - determines how the income of the two entities is divided between the U.S. and the foreign country for income tax purposes. The rapid increase in globalization has increased both trade and foreign direct investment. Much of the increase has been in the form of intrafirm trade with the result that transfer pricing has become much more important over time. International Transfer Pricing reviews this important literature, emphasizing the accounting and tax practitioner literatures while incorporating the most important contributions from the economics and legal research literatures.