Transfer Pricing in the Decentralized Multinational Corporation

This paper considers how the multinational corporation's transfer price responds to changes in international corporate effective tax rates. It extends the decentralized decision-making analysis of transfer pricing in the context of different tax rates. It adopts and extends Bond's (1980) model of the decentralized multinational corporation that assumes centralized transfer pricing. The direction of transfer price change is as expected, while the magnitude of change is likely to be less than predicted by the Horst (1971), centralized decision-making model. The paper extends the model further by assuming negotiated transfer pricing, where the analysis is partitioned into perfect and imperfect information cases. The negotiated transfer pricing result reverts to the Horst (1971), or centralized decision-making, result, under perfect information. Under imperfect information, the centralized decision-making result obtains when top management successfully informs division general managers or it successfully implements a non-monetary reward scheme to encourage division general managers to cooperate. Under simplifying assumptions, centralized decision-making dominates decentralized decision-making, while negotiated transfer pricing weakly dominates centralized transfer pricing.

Motivation and Learning in Mathematics Pre-service Teachers

Based on a review of literature of conceptual and procedural knowledge in relation to intrinsic and extrinsic motivation, the purpose of this study was to test the relationship between conceptual and procedural knowledge and intrinsic and extrinsic motivation. Thirty-eight education students with a mathematics focus (elementary or secondary) in their junior, senior, or fifth year completed a survey with a Likert scale measuring their preference to learning (conceptual or procedural) and their motivation type (intrinsic or extrinsic). Findings showed that secondary mathematics focused students were more likely to prefer learning mathematics conceptually than elementary mathematics focused students. However, secondary and elementary mathematics focused students showed an equal preference for learning mathematics procedurally and sequentially. Elementary and secondary students reported similar intrinsic and extrinsic motivation. Extrinsically motivated students preferred procedural learning more than conceptual learning. While there was no statistically significant preference with intrinsically motivated students, there was a trend favoring preference of conceptual learning over procedural learning. These results tend to support the hypothesis that mathematics focused students who prefer conceptual learning are more intrinsically motivated, and mathematics focused students who prefer procedural learning are more extrinsically motivated.