Transfer Pricing and Value Creation

1. S. 4Introduction

The modern world economy is characterized by the unrelenting influence of large companies that often act as drivers of economic development. The intensification of the capital concentration and production diversification process since the late 19th century, against the backdrop of growing competition at all levels of the economy, push companies to look for ways to improve their sustainability while paying serious attention to adapting intra-firm relations and management mechanisms to external challenges.

In the context of globalization, the role of international companies with branches in several countries is becoming more and more noticeable. As the degree of concentration and diversification goes up and, consequently, the turnover within a company grows, the question arises as to how to regulate this turnover and what management methods are required to improve the effectiveness of intra-firm transactions. The consolidation of companies, both at the national and global levels, significantly complicates the management process and slows down the speed of decision-making. This, in turn, creates the need for a decentralization of managerial functions, in particular, the ...