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Transfer Pricing in International Business by Geoff Turner

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The Development of Trade

Pick up any item in a department store, whether it be a stuffed toy, a DVD player, or a fashion item, and check the Made in tag. The likelihood that it was manufactured in your country is slim. The chances are that the item was manufactured in China or assembled in Brazil. Even the food in your supermarket, whether fresh or prepackaged, may very well have been imported from another country.

We all know that international trade has been in vogue for centuries and most civilizations carried on trade with other parts of the world. This was necessary because the resources that communities needed either simply weren’t available or could be obtained more competitively from other places. Rarely has any one community been entirely ...

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