Subject category:
Economics, Politics and Business Environment
Published by:
Babson College
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Abstract
This case offers the opportunity to explore issues surrounding transfer pricing. Both the domestic and multinational transfer pricing systems for Xerox are presented. The case shows how the systems work and how conflicts are resolved. The link between performance measures and managing currency risk are explored. The case shows how Xerox uses transfer pricing in harmony with the corporate culture and the management control system. The students see how performance distortions are created and how managers manage transfer pricing.
About
Abstract
This case offers the opportunity to explore issues surrounding transfer pricing. Both the domestic and multinational transfer pricing systems for Xerox are presented. The case shows how the systems work and how conflicts are resolved. The link between performance measures and managing currency risk are explored. The case shows how Xerox uses transfer pricing in harmony with the corporate culture and the management control system. The students see how performance distortions are created and how managers manage transfer pricing.