The Overpricing or Underpricing of Products in the Intrafirm Trade

question 34

Multiple Choice

The overpricing or underpricing of products in the intrafirm trade of multinational corporations in an attempt to shift income and profits from high to low tax nations is known as

• A)predatory pricing.
• B)transfer pricing.
• C)tax pricing.
• D)out-bidding pricing.

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Definitions:

Compliance

The act of conforming to or following rules, regulations, or standards.

Lowball Technique

A persuasion and negotiation strategy where an initially favorable offer is made, only to be changed to less favorable terms after initial agreement.

Hidden Costs

Expenses that are not immediately apparent at the time of purchase but become evident later in the use or maintenance of an item.

Feigned Scarcity Technique

A marketing strategy where a company or seller creates an artificial sense of scarcity for a product or service to increase demand.