Amazon.com - transfer pricing, taxation and the role of corporate Research Paper

Amazon.com - transfer pricing, taxation and the role of corporate social responsibility - Research Paper Example tion of these issues are described below Transfer Pricing and taxation Issues for Amazon.com Simply the transfer pricing is the price that is set for the intercompany transactions. Transfer pricing is used when the divisions of an organization need to charge other divisions of the same organizations for the goods and services provide to them. For example as in the case of Amazon.com, it is mentioned earlier that Amazon is operating the variety of departments and websites in many countries. Transfer pricing in this might possible, as a department of Amazon in United Kingdom deals in a component in United Kingdom. The same component is also required by a costumer in China. The transfer of this component form the department in US to department in china will be valued at internal price and will be referred as transfer price. In the context of transfer pricing these some factors can effect on the operations of Amazon.com. Transfer prices are particularly appropriate for profit centers bec ause if one profit center work for another, the size of the transfer price will affect the costs of one profit center and revenue to other. In the case of Amazon, each department has its own products and activities and every department in different counties is responsible to maintain its profit level. So in relation to the prospective of transfer pricing each department can try to work in their own interested segments to increase their profits. Decisions might be taken by a department manager in the best interest of his own part of business, and it may possible that this decision may affect against the interests of other departments. The profit center managers for Amazon tend to put their own profit performance above everything else. Since the profit center performance is measured according... The intention of this study is Amazon.com as a largest cyber selling company in modern cyber environment. Amazon.com started their business by selling their first book in 1995. At that time the main aim of amazon is based on a dream to develop a new trend in e-commerce. After the great success of this business Amazon now have selling every kind of products and have many sites those are serving efficiently in seven countries. The working of Amazon is an art not a science. They are dealing in lots of products. The main art of capturing the cyber market is multi-level e-commerce strategy. Due to this strategy, anyone sell almost anything using the platform of Amazon.com. The another main key factor for the success of Amazon.com is their efficient data based system which has also ranked in the top three world largest Linux data base system in 2005. The purpose of this report is to clear these mentioned issues can affect the Amazon’s performance in material manner. On the other han d, in current modern environment the value of cyber markets is increasing day by day. So it is much necessary for Amazon.com to control the all negative aspects of mentioned factors to win the race. There is also a strong need to control the problems that is stated is the Amazon’s Annual report. In short, by taking account of all these issues Amazon.com can perform in more efficient manner and easily capture the cyber market share in near future.