International business transactions have increased dramatically over the years.  Investment has increasingly expanded at an unprecedented rate in many countries. These international business activities have led to the formation of a group of companies with mutual interests which is known as "multinational enterprise" (MNE).  Companies within the MNE may trade goods or services with one another by means of   "Transfer Pricing".

• Transfer Pricing is the price set between related contracting parties for goods or services which may deviate from the market price.
• What is a Market Price or Arm's Length Price?

A market price or arm's length price is the price of consideration, service fee, or interest which independent contracting parties acting in good faith would charge in a commercial manner for the same characteristics, categories or types of property, service or loan that are transferred or provided on the date of the transfer of property, provision of service, or lending of fund.