Global Perspectives. Portfolio Essay Example | Topics and Well Written Essays - 3000 words

Worldwide Perspectives. Portfolio - Essay Example Movement Section 3 - Once you have finished this errand take one worldwide issue and one worldwide process and attempt some further examination on the web. Compose a short outline of your examination (hold for your portfolio) and afterward share with others in your individual Group Discussion Forum. On finish of the gathering conversation compose a concise outline of what you have gained from the conversation. Brief synopses of examination and what you have gained from the conversation: Put here what you held for the portfolio: a concise rundown of your exploration (approx. 200 words) and a short outline of what you have gained from the conversation (approx. 200 words). Movement Section 4 (section 1) - based on your perusing and experience what is your perspective on globalization and how can it sway upon your experience? What are the advantages (of globalization) and from whose viewpoint, and what are the negative results? Set up a synopsis of your reactions Assignment Section 5 - Chose one worldwide issue that especially interests you. Lead your own exploration on your picked issue and assess how information fluctuates relying upon its source. Consider why there are errors in sentiment in your picked issue and what the suggestions are as far as the significance of who says what and when and in particular why (what interests are in question? Formal or casual, express or verifiable). (most extreme 1 page) Action Section 6 (section 1) - Search the web to find out about practical turn of events. You are asked to think about two inquiries: If the monetary model depends on consistent development is this at chances with supportability and why? What is the job of business concerning supportable turn of events and what does your association do with respect to supportability? In this segment you have been solicited to take note of a number from reactions as you have experienced the material. Situation for UNEP Representative - Imagine you are a delegate of the UN Environment Program (UNEP) and have been

How to Write a Persuasive Essay

English 1021 Diagnostic Essay Some individuals accept that composing an exposition is very hard. They are incorrect. In the event that you have the right data, time, and some espresso you ought to have no issue. There are a wide range of kinds of expositions, for instance, an educational article, an exploration paper, or an enticing article. In spite of the fact that they all have an alternate generally speaking topic and reason for being composed, they all have a similar blueprint for how precisely to compose it. Regardless of what you generally start off with a presentation, at that point you move to your supporting passages, and end with a conclusion.Here is the inside and out breakdown of what an appropriate educational research paper should included. First thing’s first, you should consistently have a point. The subject of your paper is the center, the region that you have examined and investigated. When you discover your theme, you should ensure that you have sifted thro ugh the entirety of the accessible data. Themes are not in every case simple to discover. There are some that you ought to abstain from utilizing, for example, points dependent on one single source, and subjects that are spic and span or excessively broad.Now that you have your theme, you should conceptualize and limit the themes to make and issue. The issue of the paper is the inquiry that you are posing. While making your issue, ensure the keep away from issues that can be effortlessly replied by only one single source. Something else that you have to think of is a speculation or provisional case, a recommendation made as a reason for thinking, with no presumption of its reality. Test the theory as you keep on research.by having a case, you can keep yourself from being overpowered by the data that you are finding. Since you have thought of a subject and guarantee, you are prepared to start your exploration and paper. The following stage of this procedure is to guide your paper to your crowd. Pose yourself a few inquiries. What amount does my crowd think about this subject? What are my readers’ desires, interests, and needs concerning this issue? What proof have I thought of that will illuminate them?Once you have asked yourself those inquiries the time has come to begin utilizing your sources. Probably the best sources are papers, and books. On the off chance that you are going to utilize the web, which a large portion of us do, be cautious with the believability of what you find. When you have discovered a source that you accept accommodates your subject well, pose yourself a few inquiries and check whether the rules of the source meets it. Is this ongoing data? Is the creator believable or a specialist regarding this matter? Does this data appear to be keen and comparative with the topic?Is this proof dependable? When managing web sources ensure that they contain a creator or are facilitated by a good webpage, for example, a library, college, or an official affiliation. Since you have discovered your sources, the time has come to proceed. Taking notes on sources can now and again be troublesome. Record a portion of the things that leap out to you about the subject that may be valuable. Something else that you should record are the page numbers that you are getting the data from.Make sure to consider why you decided to record a specific thought and consistently separate your thoughts and words from that of your source. Always remember to utilize quotes for direct citations. Your next activity is to draft your exploration paper. Refine your proposal as much varying. Make sense of dependent on your data where each source may fit in. When composing your draft, abstain from utilizing your own remarks to hold together another people thought. Presently it is the ideal opportunity for you to develop your own paper utilizing the auxiliary sources that you have found to help your claims.Some things that you may need to know are the mann er by which to utilize an outline, rework, and citation. A rundown of something gives a principle thought or supporting focuses. It is short and spotlights on the central matters to give foundation or general help to your point. Summarizing put the data that you have found into new words to ensure that you and your crowd comprehend the first data all the more unmistakably. A citation records the specific accentuation and wording of the source that you have gotten it from and walls it in citation marks.You can utilize citations when an author’s words are amazingly striking and stand apart to you or when the expressions of that specific dependable authority would loan backing to your paper. Since you realize how to sum up, reword, and quote, it is basic that you don't copy. To stay away from copyright infringement, archive all that you have gained from your sources including their language and thoughts. On the off chance that you express their thoughts in your own words you sho uld in any case give them the credit and documentation. The main special case to this is when something is basic knowledge.Now that you know the entirety of the do’s and dont’s of an enlightening exploration paper it is your chance to place them into impact. The hardest thing about an enlightening examination paper is finding a point and ensuring that your sources and data are believable and comparative with the current theme. When you have discovered the entirety of the right and solid hotspots for your subject you are prepared to compose away. Like I said before, numerous individuals accept that composing an exploration paper is incredibly hard, however on the off chance that you follow these means and counsel, you will never fizzle at composing an educational research paper.

Macroindividual Essay

I have to clarify the utilizations, issue and basically look at the utilizations or issues with genuine models. Question 1 Briefly clarify the employments of National Income Statistics. Examination after some time According to Vengedasalam D. what's more, Madhavan K. (2010), national pay ready to express the economy’s execution whether is advancing, deteriorating or disintegrating on yearly premise from national salary figures. For instance like Singapore, their national pay has improved consistently throughout the years which show that the nation have a steady economy and high in profitability. With respect to economies in nations, for example, India, China, and Bangladesh are deteriorating and should make a move to expand their development and improvement. Anyway nations, for example, Vietnam, Cambodia, and some African nations have decayed as far as monetary execution. Examinations between Countries Ali H. (1999) expressed that we can separate the turn of events and creating nations through national salary. As per a universal association, OECD (Organization Economic Cooperation and Development) measurement, Singapore was the thirteenth most extravagant nation on the planet. OECD is to handle the nation execution to evaluate the nation is created or as yet creating. Nations, for example, Ethiopia, Myanmar, Bangladesh and the greater part of the Asian states are the more unfortunate countries. Estimation the Standard of Living According to Vengedasalam D. what's more, Madhavan K. (2010), across the country profit data ready to assist us with assessing the quality way of life of people in various countries and the people living in similar countries at various occasions. There is a connection between's national salary and way of life since when pay is high, expectations for everyday comforts is high; when pay is low, expectations for everyday comforts is low. For instance nations, for example, United States, United Kingdom, Canada, and Australia have high national pay and furthermore elevated expectations of living. In any case, with respect to the nations, for example, Ethiopia and Myanmar have low national pay prompts low expectations for everyday life. Equalization of Payment Ali H. (1999) expressed that strength of exchange can be decide as the total of costs and solicitations that a country produces as consequence of move and exchange worldwide with different countries. We can roughly compute whether the country will confront need or abundance equalization of exchange through the across the nation income information. There will be a yield of forex from the country and this will prompt disequilibrium in the total measure of exchange if income paid abroad are far more noteworthy than profit acquired abroad. National Planning According to Vengedasalam D. furthermore, Madhavan K. (2010), national arranging likewise knows as arranging of every one of the nations which dependent on the national pay measurement, the legislature will detail its present moment and long haul financial arranging. For this situation, Karl E. Case and Ray C. Reasonable (2003) expressed based on present monetary execution, the administration should conjecture future turns of events. This which if salary increment, plans for the future will build; same goes to if pay decline, plans for the future will diminish. This likewise significant and why all the nations need to group information on national pay. Question 2 Discuss the issues associated with ascertaining the GNP per capita of an economy. Underground Economy O’Sullivan A. , Sheffrin S. M. , and Perez S. J. (2012) expressed that one of the critical issues from estimated GDP is purported underground economy where exchanges are not answered to authentic specialists. As per Lipsey (1998), a few exchanges are splendidly lawful, yet for the individuals don't report their salary that they have created it is on the grounds that they needed to abstain from settling charges. For instance handyman who fixes pipes spillages in the latrine and just get installment with money which is to maintain a strategic distance from charges and these exchanges are not recorded so they are prohibited from GDP. As indicated by Tucker I. B. (2008), some exchange, for example, illicit betting, unlawful medications, unlawful firearms prostitution, and advance shark are merchandise and ventures that meets each prerequisite for GDP however GDP does exclude unreported lawbreakers exercises. Nonmarket Activities According to Lipsey (1998), dealings that don't take position in the organized business are additionally being ignores by GDP. For delineations like arrangements that people accomplish for themselves in their own homes on the grounds that these arrangements are not traveled through business sectors; this is so GDP analysts can't assess them. Exhaust I. B. (2008) expressed nonmarket exercises that are not moved however the business sectors, for example, homemaker creation, do-it-without anyone else's help exercises, childcare administrations, and deliberate work. Issue of Illiteracy Vengedasalam D. what's more, Madhavan K. 2010) expressed that issue of absence of education most occur in underdeveloped nations like Bangladesh, Indonesia, Myanmar, India, and numerous African countries which the individuals there don't have the foggiest idea how to keep records of their gainful exercises. With this issue of absence of education, the administrations of these nations w ill experience issues in getting data, for example, assessed estimation of home delivered item. For instance individuals there don't have information on advertising and account which causes them to don't have the foggiest idea about the estimation of item they are selling. Issues of Expertise According to Vengedasalam D. nd Madhavan K. (2010), one of the serious issues of creating nations is lack of experts. So as to quantify the national salary precisely, we need the expert administrations, for example, analysts, investigators, software engineers, specialists. With these experts in the creating nations will have the option to introduce the national pay information precisely with less specialized and human blunders. For instance if the nation don't have software engineer, they have to record the national pay information in papers and there will be progressively human mistakes. Absence of Sophisticated Machinery Vengedasalam D. furthermore, Madhavan K. (2010) expressed that specialized viewpoint is as significant as human factor. Specialized perspective, for example, having advanced hardware is expected to figure information and data. For instance, issues that creating nations like Indonesia and Peru are confronting the issue of specialized specialists and specialized gear. There nations need this most recent and advance hardware to register gigantic volume of information. At long last, information that gathered on national salary should be examined utilizing complex apparatus paying little mind to which technique is utilized. Question 3 Clarify with models whether you bolster its utilization as a proportion of personal satisfaction in a nation. No, I don't bolster its uses as an assessment of all out prosperity in a country. The elements as follows: Problem of Illiteracy Third world nations like Bangladesh, Indonesia, Myanmar, India, and numerous African country confronting this issues where the individuals there don't have the foggiest idea how to keep records of their beneficial exercises. For instance, Memon G. R. (2007) expressed Pakistan has perhaps the littlest cost of subtleties on the globe, and the littlest among countries of relative assets and open or budgetary conditions. With a for each nearby family members income of over $450 Pakistan has a more seasoned subtleties measure of 49%, while both Vietnam and Local Indian local with less per close family members profit have subtleties costs of 94% and 52%, separately (Human Development Middle, 1998). Information is more noteworthy in places and in the regions of Sindh and Punjab, among the more prominent profit gathering, and in men. Nonmarket Activities According to Shaheen S. , Sial M. H. , Awan M. S. (2011), woman’s alternative about commitment in work advertise is of urgent significance in deciding expectation for everyday comforts, reliance stress and sparing plan in homes. Ladies mean about portion of the individuals in this nation in Pakistan. In any case, in Pakistan for the most part female’s execute occurs in non-advertise exercises in the home or the casual market. In late past ladies commitment in present day advertise exercises has been expanding. Variables deciding the calling of ladies are very unpredictable. At the individual level female’s alternative to execute is theme to such factors as the accessibility to ventures, information level and aptitudes. Underground Economy One of the issues from estimated GDP is purported underground economy where exchanges are not answered to authentic specialists. As indicated by Schneider F. what's more, Enste D. H. (2000), the outcomes from eight countries in African-american are uncovered, among these, Nigeria and The red ocean have the greatest underground money related frameworks with 76 % and 68 % of GDP; Mauritius has the littlest underground financial framework with 20 %. Executing the forex necessity procedure, Tanzania had an underground financial arrangement of 31 % (of GDP) in 1989â€90, and Southern African-american, 9 % in 1989 to 1990. The situation of the size the underground budgetary frameworks for the Africa countries is fortified by indistinguishable outcomes and verifiable evidence from Pozo (1996); Lawrence Chickering and Muhamed Salahdine (1991); and Lubell (1991). End I have clarified the utilizations and issues. I have additionally analyzed the issues with genuine models.

How to Find the Best Website to Buy College Papers

How to Find the Best Website to Buy College PapersIf you're looking for the best website to buy college papers, then it's not just about trying to find a place with the cheapest prices and the lowest quality. What's more important is that the college paper you buy is a quality product that you will be proud to have as a graduation gift. All of these factors go into determining how much you should pay, what website to buy college papers from, and how to keep your students happy in the process.First of all, if you're not sure where to begin, there are plenty of websites out there to choose from. One site is dedicated to helping you find the best website to buy college papers. This site has a huge list of these stores along with other companies and people who specialize in getting the papers they need for student government, loans, and financial aid.Another great website to buy college papers from is Charity Research. They've spent years and countless hours researching each company on t heir website. They have also done so in writing educational reports about these companies.You can save hundreds of dollars in paper costs by using this website to buy college papers. The company is extremely user friendly and they have over twenty different search engines at their disposal. In addition, they give you plenty of options to sort through the different websites to see which one best fits your needs.When it comes to shopping for the best website to buy college papers, there are quite a few that you can try. You should never buy a paper from a particular company that you don't want. There are certain websites that sell college papers that require a credit card number and you may not want to do that.The best website to buy college papers is one that gives you a variety of options. You want to find one that lets you compare prices, so you know what you're really paying for and how much it is. These are all things that you want to be able to find when you are buying college p apers.There are websites to buy college papers that are as easy to use as any one else, but you don't want to get your hopes up before you've tried them out. Don't let the price stop you from finding a site that gives you exactly what you need and that meets your needs. Use a little bit of the information you've found in this article to help you get to the top of the pile when it comes to finding the best website to buy college papers.

The Great Gatsby Analysis - 1458 Words

The subliminal collapse of self-morals is evident in The Great Gatsby through several of its characters and is mirrored in the east coast society of the twenties. The characters in The Great Gatsby though spoiled with riches, do not stray far from their self-serving goals to do anything other that to look out for their own self-interests. It seems as if no character in the book, besides Nick, ever give thought to the results of their actions beyond their own initial perceptions of the situation. All discernible characters in this book project a true form of cultural ignorance that prevents them from progressing through their lives constructively. Society, as portrayed in The Great Gatsby, seeming to drift around in a vast ocean of†¦show more content†¦It is almost a requirement to make themselves seem a way that they are not as to be accepted in the shallow society of the twenties. Daisy especially shows this trait in her over elaborate phrasing of statements. She displays h erself with these big, extravagant sentences that make her out to be delicate, privileged and important, as was any popular feminine figure at the time. She says, â€Å"I love seeing you at my table, Nick. You remind me of a––of a rose, an absolute rose. Doesn’t he?’ She turned to Miss Baker for confirmation: ‘An absolute rose?† (14). The way she unrolls this dramatic statement only describes her even more as an artificial royal acceptance seeking person. She seems pleasant in a very unpleasant and unnatural way. Another form of deceitful social behavior is seen in the way Gatsby is portrayed as a constantly morphing character throughout the book. You never quite know the whole truth behind Gatsby making him a mysterious figure. Fitzgerald did this to give Gatsby a deceitful untrustworthiness, so the reader never really had a defined ideal of what to think of him. Characters in the Great Gatsby have a level of carelessness that remains the same throughout the book. Throughout the book the carelessness has consequences that add increasingly upon one another, ultimately leading to the collapse of this group of people, or small society. This group of people Fitzgerald uses as theShow MoreRelatedThe Great Gatsby Analysis1274 Words   |  6 PagesAlthough the timeline is kept vague in The Great Gatsby, F. Scott Fitzgerald makes it clear that his work of art is based in the early 1920’s between World War I and the Prohibition. This was a transitional period in the United States. America changed after the war and as a result, so did life. The idea of the perfect life fluctuated as troops began flooding back to the United States, migrating to cities, picking up jobs, and buying houses for their new or planned families. The economy was boomingRead MoreAnalysis Of The Great Gatsby 857 Words   |  4 PagesEnglish 3 3 February, 2016 The Great Gatsby Character Analysis Essay: Jay Gatsby â€Å"It is easier to live through someone else’s existence than to complete yourself. The freedom to lead and plan your own life is frightening if you have never faced it before. It is frightening when a man finally realizes that there is no answer to the question who am I except the voice inside himself.† (Betty Friedan). If the name â€Å"Gatsby† was fraudulent, then perhaps the description â€Å"great† in the title of the bookRead MoreGreat Gatsby Analysis1551 Words   |  7 PagesSmithley Vil Mr.Haughey World Literature 10 October 2012 Gatsby Analysis Isolation is a significant and recurring theme throughout the novel â€Å"The Great Gatsby†, by F. Scott Fitzgerald, that has had a great impact on its characters. A few in particular are Nick Carraway, Daisy Buchanan, and â€Å"Jay Gatsby†. Nick who appears to be everyone’s closest friend and confidante when he is really the most alienated character in the novel. Daisy Buchanan who feels alone and ignored, even while married, withRead MoreThe Great Gatsby Analysis5626 Words   |  23 PagesIntroduction â€Å"The Great Gatsby†Ã‚  is a  novel  by the  American  author  F. Scott Fitzgerald. First published in 1925, it is set on  Long Islands  North Shore  and in  New York City  from spring to autumn of 1922. The novel takes place following the  First World War. American society enjoyed prosperity during the â€Å"roaring†Ã‚  as the economy soared. At the sameRead MoreThe Great Gatsby Written Analysis876 Words   |  4 Pages Gatsby is Whipped (An Analysis of The Great Gatsby written by F. Scott Fitzgerald) F. Scott Fitzgerald is arguably one of the greatest writers to ever come to earth. In the 20th century, he wrote far beyond his time, and wrote about topics that others were afraid to bring up. â€Å"Genius is the ability to put into effect what is on your mind.† (Fitzgerald) One of his better known novels, The Great Gatsby, brings up several diverse and arguable topics, but also presents many messages too. The threeRead MoreAnalysis Of The Book The Great Gatsby 839 Words   |  4 PagesMia Mooko AP Lang. Summer Assignment 30 July 2016 The Great Gatsby Section One: 1. By the third paragraph of the third chapter, verb tense changes. What is the effect of this change, or what do you think it s purpose is? When describing Gatsby s parties, Fitzgerald switches from past to present tense not only to make the reader feel as if they are engulfed in the festivities, but to also emphasize the repetitiveness and predictability of his parties. By using present tense, the readerRead MoreLiterary Analysis Of The Great Gatsby 1490 Words   |  6 PagesJaylinn Cooper Mrs. Fowler English III March 3, 2017 Literary Analysis of The Great Gatsby The 1920s in America, known as the Roaring Twenties, was a time of celebration after a destructive war. It was a period of time in America characterised by prosperity and optimism. There was a general feeling of disruption associated with modernity and a break with traditions.The Roaring Twenties was a time of great economic prosperity and many people became rich and wealthy. Some people inherited oldRead MoreThe Great Gatsby Book Analysis1016 Words   |  5 Pagesthoughts by expanding my knowledge on deeper meanings and symbolism in literature. Before reading The Great Gatsby, it was just a book about a man who had great wealth and threw many extravagant parties to get the attention of a woman named Daisy Buchanan. After further analysis, I discovered there was a deeper meaning to almost everything that I had read. The whole plot of the book The Great Gatsby has an entire different meaning if you look past the surface of the book. Throughout this story youRead MoreAnalysis Of Money In The Great Gatsby1111 Words   |  5 Pages(Literary analysis on The Great Gatsby by F. Scott Fitzgerald) Gold diggers are commonly known as women that only go after a guy because of the money that he has. The said women doesn’t even need to love the man just to have the money is enough to keep her around on him. Often times there is a man that really does like this lady, but because he doesn’t have money he never gets with her. What if this man without the money decide he would do anything to get money to impress the girl. The Great Gatsby byRead MoreThe Great Gatsby Character Analysis956 Words   |  4 PagesIn the book, The Great Gatsby, written by F. Scott Fitzgerald, there is a strong message about the social class systems about the societies that exists between them. First, there are people like the Buchanans and Jordan Baker who were born into wealth and never really had to work for their money. Secondly, The new money people who can never really be like them, inherently because they have had to work for their money and sometimes finding it had been rough while doing so. (Houghton Mifflin) In

A Working Polish Man Named Jurgis Rudkus - 1199 Words

Introduction: -Often times success is not able to be achieved through hard work. -Background information: A working Polish man named Jurgis Rudkus moves to Chicago in the United States in hopes for a better future with his family. He and other members in his family work work hard to make a living and as time passes some die while others become corrupted by societal influences. -Thesis: Upton SInclair applied aspects of the Civil War in his novel with his views on the treatment of humanity through the use of symbolism, and the presentation of the conflict and resolution. Body Paragraphs Paragraph 1: 1P: The symbolism presented in the novel brings upon the relation of the oppression experienced by the immigrant workers and African American†¦show more content†¦He was too naive thinking that he would be able to achieve the American Dream by just working hard. Similar to the moment when the pigs, with the power of their own feet, walk towards their death, Jurgis and his family have come to America, unknowing of the cheating and selfish men who take advantage of the family’s position as low-class and illegal immigrants. Jurgis reaches this point in life when he finally realizes that the American Dream is all a hoax, but his family is stuck in debt, unable to get out. Just like the hogs in the meat-packing factory,African Americans were born as slaves to work. This work would lead to the profit of their owner like how the owners of the meat packing factories profit from killing and selling pork. Slaves, hogs, and Jurgis’ family are put in this position of ensl avement by the people of power(factory owner and rich plantation owners) to make a large profit. Sold into slavery, most Africans worked for rich white men who made large profits from the work of the slaves on the farms. -Transition sentence: The hogs, Jurgis’ family, and African American slaves all relate to each other in the aspect of oppression by a position of power. Paragraph 2: 2P: The hardships faced within Jurgis’ family and African Americans during the Civil War are displayed through the conflict introduced in the rising action of the novel. -In the novel,

Business Transfer Pricing Methods

Question: Describe about the Business Transfer Pricing Methods. Answer: Part A Transfer price is the price at which goods or/and services are bought and sold (transferred) between divisions of the same corporations. For example, in an automobile manufacturing company, if the subsidiary which manufactures tires sells them to the parent company, the price paid by the parent company for the tires is called the transfer price. The divisions of a large multi-department company can be treated as separately run companies with the use of transfer pricing. In contemporary accounting, different divisions of an organization are run as profit-centers, i.e they are accountable for their own profits. Now if a division transfers its goods to another division of the same company, what price should it use to determine its contribution margin? Similarly, if a division accepts transfers from another division, what cost should reflect on its profit and loss statement for these goods? A transfer price is used to determine these prices and costs. (Schuster, 2010) Different divisions of a company may be located in different countries with different tax norms. A company may use transfer pricing to lower its tax liabilities by lowering the profits of divisions located in countries with higher taxes. Similarly, it can raise profits of divisions which are located in countries with lower tax-rates, also known as tax havens. Therefore, there are regulations put in place by various governments on transfer pricing to curb corporate tax avoidance. (Chand, 2014) Transfer prices can be of following types: Market based transfer price: In this type of transfer pricing, transfer price is set equal to the market price of the product that is transferred. Such kind of transfer pricing is used when the market is perfect for the product that is transferred i.e The product should be homogenous i.e there should not be similar products with difference in quality. It should be as close to a commodity as possible. For example the capacitors that are used in a television are very close to a commoditized transferred product. There should only be one price of the product in the market for both the buyer and the seller. The seller should be able to sell the product in the market at the same price at which the buyer is expected to purchase that product in the market, at the least. For example, if the seller can sell the product at $90 in the market, the buyer should have to pay at least $90 in the market to buy the product. There should be no variable buying or selling costs. It should not be the case that if the seller wants to sell the product in the market instead of transferring it to the buyer, he has to incur an extra selling cost. Similarly, it should not happen that if the buyer wants to buy the same product in the market rather than transfer it from the seller, he has to incur excess transactional costs. The selling division should be operating at full capacity and should able to sell whatever quantity of product it is producing. In this case, the seller will have to forego external sales if it transfers any amount of product to the buyer. In order to compensate for the opportunity cost, the amount lost due to loss of external sale should be included in the transfer price. Thus, transfer price is equal to the market price. (Burkadze, 2016) In this type of transfer pricing, the minimum transfer price would be equal to the maximum transfer price and both the seller and the buyer would be happy with the market price as being the transfer price. This transfer pricing will help in providing a good basis for performance evaluation and reduce the animosity between divisions. However, such a kind of transfer pricing is rarely seen practically as there is always a certain amount of product differentiation which leads to there not be a single price for the product. Also, the market price may vary over very short periods of time due to external reasons such as promotions or the seasonality of the product.(APM Stuff, 2011) Cost- based transfer pricing: Full Cost Plus Pricing: Full cost includes the variable cost as well as the fixed cost involved in the production of the transferred product. Here the transfer price is set as the full cost plus some mark-up. This type of transfer pricing ensures a positive contribution margin for the selling division. However, the buying division may not be happy with this transfer price if it is greater than the market price of the product. Such kind of transfer pricing is suitable when there is no external market for the transferred product. Marginal Cost Plus Pricing: Marginal costs means the sum of all variable costs. It is the incremental cost incurred by the seller to produce the good or provide the service. Here the transfer price is set as the marginal cost plus some mark-up. It does not ensure a positive contribution margin for the seller. Selling division needs to add attach sufficient margin in order to recover its fixed costs. The selling division may not like this kind of transfer pricing if as it involves the risk of not recovering the fixes costs. The buying division will accept the transfer price if it is lower than the market price. This kind of transfer pricing is suitable when the selling division has some unused capacity. Marginal Cost Plus Opportunity Cost Plus Pricing: Opportunity cost is the loss of external sale opportunity due to selling of the product internally to the buying division. Marginal cost + Opportunity cost is the minimum transfer price that the selling division would accept. For selling division, there would be an incentive to transfer internally if a mark-up is added rather than selling it externally. Buying division will accept the transfer price only when the transfer price is lower than the market price. Such type of transfer pricing is used when there is no unused capacity at the selling division but there is still unmet market demand.(Investopedia, 2013) Negotiated transfer pricing: This type of transfer pricing is used in case of an imperfect market. In case of an imperfect market, there are transaction costs both for selling and buying division if they want to buy or sell in the external market, there are different market prices for the product. In such cases transfer prices cannot be set at market prices as the selling or buying divisions would work inefficiently at those prices. The management has to intervene in such situations to arrive at a negotiated transfer price between the buying and the selling division. The negotiated transfer price would lie between the minimum price at which the selling division is willing to sell and the maximum price at which the buying division is willing to buy. The negotiated transfer pricing can however be time consuming and can lead to sub-optimal decisions. It is strongly influenced by the bargaining skills of the selling and the buying division managers. Transfer pricing is used by the top level management of the corporations for the following purposes: Profit Allocation: Transfer prices are used by the companies to determine the profits of its various divisions, which are further used for appraisals and other financial reports. While transfer price is the revenue for the selling division, it is the purchase cost for the buying division. Multi-entity Corporations use the synergies between various divisions to lower their costs and increase their overall profits. Coordination: When a company is divided into divisions and divisional profit is the main determinant of performance measurement, divisional managers can make decisions keeping in mind only the profits of the divisions and not the company as a whole. This can lead to goal incongruence. Transfer prices decided by the centralized (top) management can influence the behavior of divisional managers and steer them to work for the betterment of the corporation. A higher transfer price leads to change in the production process of the buying division, leading them to a higher efficiency, as it reduces the amount bought by the buying division. A lower transfer price can lead to similar effects on the selling division. This exercise is also known as goal congruence. Calculation and cost accounting: Transfer prices are used to determine the cost of goods produced for the buyer division and the revenues for the seller division. This is further used for external regulatory purposes or for third party purposes. Transfer prices lead to simplification of a lot of cost accounting calculations. Tax Accounting: Transfer prices are used for optimization of taxes by the organizations and for other related payments. Companies structure their transfer prices based on such considerations. Some companies can (and do) manipulate their transfer prices using practices which are not always ethical to save tax liabilities. OECD has laid out guidelines to prevent such manipulations and applies the arms length principle. This principle requires the divisions to treat other divisions at an arms length, i.e as if the divisions were completely separate companies. They have to determine the arms length price, which can be difficult for cases where the product are differentiated. Different governments have entered into agreements between taxpayers regarding settling on transfer prices. They are called advance pricing agreements or APAs. APAs are based on well research documentation prepared by the taxpaying corporations for the government. They require a lot of negotiations between the taxpayer and the designated government tax authority. These agreements are generally effective retrospectively. Fraudulent transfer pricing is strongly dealt with by the governments and the relevant authority. Known as transfer mispricing, fraudulent transfer pricing relates to adjusting of transfer pricing by corporations to deceive tax authorities. For example, companies may have 2 subsidiaries with one in a tax haven and other in a high-tax regime. The one in tax haven will sell its product to an intermediate subsidiary at a low price resulting in low tax. While the intermediary will sell to the division in a high tax regime at artificially high prices so as to show low profits and hence low taxes. Such kind of manipulation is leading to capital flight from developing countries of Asia and Africa. (Lanewala, 2011) Part B Transfer pricing should not be based on total actual costs as this practice can be misused. An inefficient department can pass on its excess costs to the division which is buying its product and hence hide its inefficiencies. The division buying the product will hence have to show higher costs due to the higher price it is paying to the inefficient producing division. Similarly, an efficient producing division will have to sell its products at lower prices to the buying division, which can exploit the lower transfer costs to show higher margins. Thus, transfer prices based on total actual costs would not give a fair assessment of divisional performance. Cleaning and Scraping Division Processing Division Sale Price 95 160 Transfer Price 0 95 Direct Material 18 5 Direct Labour 12 10 Manufacturing overhead (variable) 30 10 Variable Selling Cost 5 0 Contribution margin 30 40 Following would be the price range acceptable to both divisions if negotiated transfer pricing is used and firms are allowed to buy/sell in the open market: Upper Limit: Market price = 95 Lower Limit: Total production cost + 20% margin = Direct Material + Direct Labour + Manufacturing overhead + 20% margin = 60 +12 = $72 Therefore the price range would be $72 - $90. As discussed in Part c, lowest transfer price acceptable to Cleaning and Scraping division would be $72. This would not be preferred by the manager of the Cleaning and Scraping division as it would mean a contribution margin of only (72-60=) $12. If it sells on the open market it would mean a contribution margin of $30. Thus the Cleaning and Scraping division will lose ((30-12)*400000=) $7,200,000 by accepting a transfer price of $72. This would not show a good performance by the Cleaning and Scraping division manager. References: APM Stuff, 2011, Different Types of Transfer Pricing Methods, Blogspot, viewed September 16, 2016 https://apmstuff.blogspot.in/2011/07/different-types-of-transfer-pricing.html Burkadze, E., 2016, Interaction of Transfer Pricing Rules and CFC Provisions, International Transfer Pricing Journal, viewed September 16, 2016 https://www.ibfd.org/IBFD-Products/Journal-Articles/International-Transfer-Pricing-Journal/collections/itpj/html/itpj_2016_05_int_3.html Chand, S., 2014, 5 Types of Transfer Pricing Methods used in International Marketing, Your Article Library, viewed September 16, 2016 https://www.yourarticlelibrary.com/product-pricing/5-most-important-types-of-transfer-pricing-methods-used-in-international-marketing/5820/ Investopedia, 2013, Transfer Price, Investopedia, viewed September 16, 2016 https://www.investopedia.com/terms/t/transferprice.asp Lanewala, M., 2011, Types of Transfer Pricing for Measuring Evaluating Divisions, Management Accounting, viewed September 16, 2016 https://managementaccounting.accasupport.com/2012/08/types-of-transfer-pricing-for-measuring.html Schuster, P., 2010, Transfer Prices: Functions, types and behaviuoral implications, questia, viewed September 16, 2016 https://catalog.flatworldknowledge.com/bookhub/reader/4402?e=heisinger_1.0-ch11_s08