Under what pricing conditions is transfer pricing considered to be legal? Examine the consequences of transfer pricing within the automobile industry. What strategies can international companies implement to manage these consequences?
(No more than 2 pages). (10 Marks)
2. Commonly, global brands adopt a ‘glocal’ approach in their promotions, opting to globalise their advertising campaigns and localise their sales promotions. What would their reasons be for doing so? Discuss and justify with examples.