A framework of analysing virtual transfer pricing mechanisms in global supply chain

Document Type


Department or Administrative Unit

Finance and Supply Chain Management

Publication Date



Supply chain is a network of financial flow while contract is a primary way of recognising and distributing profits between buyer and supplier in a supply chain. Virtual transfer pricing defined in this study is the mechanism of using contract bundles within a global supply chain to maximise profit. We propose three virtual transfer pricing models. The models are articulated with mathematical presentations for clarity. This is one of the first studies to identify basic components of virtual transfer pricing which have significant implications for firms in global supply chains as well as governmental tax agencies all over the world.


This article was originally published in International Journal of Technology, Policy and Management. The full-text article from the publisher can be found here.

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International Journal of Technology, Policy and Management


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