Identify and explain the principal techniques of transfer pricing, and Essay

Identify and explain the principal techniques of transfer pricing, and comment on likely developments in transfer pricing in an era of globalization - Essay Example In contrast, a market price is not determined by an individual but prevails to any participant within a market set-up involving exchange of goods and services between unrelated persons. We note that the market price cannot be tampered with and every person strives to maximize on own gains. Prices within the conventional market scene are determined by forces of market while the transfer prices are determined and set by an individual and thus are not negotiated freely or openly. This implies that transfer prices would often deviate from the conventional market prices within the same or alike market circumstances. It is worth to note that subsidiaries to one enterprise operating within one country face similar operational environment and hence the transfer prices poses similar problems of tax avoidance while compared to subsidiaries operating within different countries. With multinationals running various subsidiaries in different countries, which have different regulatory frameworks, t axation problems through transfer prices are very pronounced. The most prevalent problem with price transfers with multinationals is the tendency of subsidiaries stating inaccurate prices in order to lower profit margins to avoid high taxation. Beside, multinationals manipulate transfer prices through the internal payment networks with the goods they share between one to another. Therefore, the channels adopted within trading transactions by multinational subsidiaries, some price distortions are possible which may not be possible within the uncontrolled trading transactions by unrelated/unaffiliated trading companies. There are a number of principles techniques, which are applied in transfer pricing and which determine the overall outcome in price transfers. The methods of transfer pricing involve ways of calculation of margins of profits of business transactions within an entire business enterprise. However, it is worth

Mexican Healthcare system Article Example | Topics and Well Written Essays - 1000 words

Mexican Healthcare system - Article Example The improvement in the healthcare system in Mexico continued throughout the 19th century registering a great status improvement in the 1990s, where the mortality patterns were found to match with those the most developed societies. The government of Mexico has established a three-tire health system that takes care of all its citizens at subsidized rates. The Mexican Social Security Institute (IMSS) was established in 1943 to cater for the welfare of all employees in the private sector and their dependants within the country, which works as a tripartite system involving the joint funding by the employer, the federal government and the employee. The Institute for Social Security and Services for State Workers (ISSSTE) on the other hand caters for the social welfare and the health needs of the government employees (Johnson & Stoskopf, 2010). The difference in the healthcare systems between the USA and Mexico lies in various fundamental concepts. First, there is a disparity in the covera ge of the healthcare system in the USA and Mexico, where all citizens in the country are covered through the three-tire healthcare system; while in the USA the healthcare system does not cover all citizens (Garman, Johnson & Royer 2011). Secondly, the cost aspect presents another disparity, where the cost of healthcare in Mexico is lower, compared to the USA. Another major difference is that in Mexico, most of the healthcare system falls under the public sector, while in the USA, most of the healthcare is provided by the private sector (Johnson & Stoskopf, 2010). Characteristics of the consumers, providers, payers, and regulation policies in Mexico, compared to USA The characteristics of the consumers in the Mexican healthcare system varies from those of the USA consumers in that, the Mexican consumers do not necessarily need to have a healthcare insurance to be able to access subsidized healthcare, while in the USA, the consumers need to be covered by a health insurance scheme to b e able to access subsidized health service (Garman, Johnson & Royer 2011). The characteristics of the providers on the other hand, varies greatly between Mexico and the USA, since public the healthcare providers in Mexico operates under government sponsorship, thus providing subsidized healthcare service to the citizenry. On the other hand, the providers in the USA comprises the private sector as the main player, thus the access to subsidized services are a preserve of a few, who can afford health insurance. Nevertheless, the USA government accounts for a larger share of healthcare provision and financing, accounting for 46% financing of the healthcare system, while the Mexican government accounts for a slightly lower share, financing 44% of the healthcare provision in the country (Johnson & Stoskopf, 2010). The regulation policies also differs, though to a smaller extent, with the USA providing an open and optional feeding system, where the patients are free to choose the menu, whi le at the same time being allowed outside food. On the country, the Mexican health system offers a single brand of food, while prohibiting outside food in the health facilities (Garman, Johnson & Royer 2011). The staffing, appointment and timeliness policies also differs in both country, with the USA applying an adequate staffing policy for its healthcare, as well as upholding a strict appointment and timeliness policy, as the fundamental aspects of healthcare pro