Transfer pricing refers to the practice of determining the prices at which various entities within a multinational corporation (MNC) deal with each other for goods, services, financing or intellectual property. These transactions can include the sale of products, provision of services, provision of financing, licensing of patents, trademarks, or copyrights, and more. In essence, transfer pricing sets the prices for these internal dealings as if they were taking place between unrelated parties in the open market.

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