Economic and Political Megatrends: Shaping Transfer Pricing Policies in an Increasingly Disruptive World

01 November 2021
Dr. Yves Hervé and Ronald Bernstein

From 1990 to 2015, many multinational enterprises (MNEs) moved toward a strategy of centralizing their global operating and transfer pricing models. During this time, MNEs invested in emerging markets, which stimulated global economic development. The stable economic and regulatory environment facilitated international value chain structuring and tax planning for MNEs. By centralizing transfer pricing policies, leading MNEs lowered their effective tax rate and were able to expand internationally while growing their relative market share.

Managing Director Dr. Yves Hervé and Principal Ronald Bernstein published an article in Financier Worldwide titled “Economic and Political Megatrends: Shaping Transfer Pricing Policies.” In it, they explain how the transfer pricing policies of MNEs are impacted by trends including:

  • Global political and macroeconomic disruptions;
  • COVID-19 and environmental disruptions; and
  • Digital transformation and tax regulatory disruptions.