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Answer:
Multinational corporations have been accused of deriving unfair tax advantages, by using the transfer pricing mechanism between companies, within the parent group, located in different countries, in order to profit. Multinational corporations are positioned to engage in collusion to fix market share and provide substandard goods and services at fixed prices to consumers in developing countries.
Explanation:
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Multinational enterprises have been accused of profiting unfairly from the transfer pricing mechanism between subsidiaries within the parent group that are situated in different countries.
What is multinational corporations?
Transnational corporation or multinational corporation are the companies that have offices in more than one country.
The headquarters of the company might in the original place, but they have many companies with the same title or name across different nations of the world. The example of multinational company is Microsoft.
Thus, Multinational enterprises have been accused of profiting unfairly from the transfer pricing mechanism.
For more details about multinational company, click here:
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