International - The Application of the Arm’s Length Principle to the Allocation of Joint Efficiencies within MNEs
- C.(X.) Peng
- International Transfer Pricing Journal, 2016 (Volume 23), No 5
- 31 August 2016
This article attempts to address the arm’s length approach to allocating joint efficiencies within MNEs from a practical perspective, given the assumption that the arm’s length principle is conceptually accountable for the combined force of an MNE. Particularly, this article discusses the five transfer pricing methods in detail as well as real-life solutions to allocating economies of scale, a prototype of joint efficiencies, in the context of procurement activities.