Why Does Transfer Pricing Become Especially Complex When the Global

question 157

Multiple Choice

Why does transfer pricing become especially complex when the global market is involved?

• A) because a global firm can use transfer pricing as a tax-avoidance device and governments dislike such activities
• B) because issues of quality control can be serious, even when divisions of the same firm are involved
• C) because shipping materials across national lines involves payment of duties and taxes, and these become part of the total price of the goods
• D) because the temperature and humidity differences between origins and destinations often damage the products

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Definitions:

Job Characteristics Model

A framework that proposes that five core job dimensions lead to critical psychological states, affecting motivation, job satisfaction, and job performance.

Growth Need Strength

The extent to which people desire to achieve higher-order need satisfaction by performing their jobs.

Core Job Characteristic

Fundamental attributes that affect an individual's work motivation, satisfaction, and performance, such as skill variety, task identity, and autonomy.

Hackman And Oldham

A theory proposed by Richard Hackman and Greg Oldham that suggests job design can influence employee motivation, satisfaction, and performance through five core job dimensions.