The Impact of Location Advantages on the Transfer Pricing of Multinationals: On the Chinese Love for European Designer Handbags and Lower Production Costs in India

Journal
International
International Transfer Pricing Journal 2014 (Volume 21), No. 4
The authors discuss the impact of location advantages on the transfer pricing of multinationals. Specific guidance from the OECD and United Nations on location advantages is considered, followed by a discussion of two international tax cases. The current practice on location advantages and transfer pricing in the Netherlands and in China, as examples, is also examined.