Transfer Pricing by Multinational Enterprises. A critical analysis of the Nike case

The paper aims to determine the importance of transfer pricing, a crucial factor in the context of international operations of multinational corporations. By regulating transfer prices among entities within multinational groups operating in different jurisdictions, this practice significantly influences the international market. If used correctly, transfer pricing can facilitate a fair distribution of profits among various divisions of a multinational company, enabling efficient resource allocation and promoting global development. However, if misused, it can become a mechanism to artificially shift profits to low-tax jurisdictions, compromising fiscal equity and generating disputes. Through the conducted analysis, an urgent need for continuous dialogue and potential reforms emerges to establish a more equitable and transparent international fiscal governance framework, aimed at reducing opportunities for tax evasion. This approach seeks to reconcile the interests of multinational enterprises with those of national economies. It is crucial to promote an environment that fosters sustainable economic growth and social well-being. Achieving balance, as the objective of all multinational enterprises and countries in the global trade landscape, requires clearer and universally accepted practices for a fairer international fiscal dynamics.