Globalization could be defined as “the interactive co-evolution of millions of technological, cultural, economic, social and environmental trends on every imaginable spatio-temporal scale (Rennen & Martens 2003). When talking about globalization, the topic of transfer pricing always seems to come up, which could be because multinational corporations that trade with each other and the government also use transfer pricing. Therefore, transfer pricing is used worldwide and could be considered an important accounting factor that enables business success, as it is designed to induce optimal decision-making in decentralized companies. Transfer pricing could be set when a company exchanges goods. /services and sharing of profits and taxes with another subunit of the same company in a different country (Matt Barbella 2011). The four major objectives of transfer pricing are to provide information to make good economic decisions, to provide information to evaluate divisional performance, to promote congruence and autonomy of subunits. There are three main types of transfer pricing methods that businesses use to transfer goods/services. These methods are market-based transfer pricing, transfer pricing negotiation and cost-based transfer pricing. Although transfer pricing has four main objectives, there is no true transfer pricing method that achieves all four objectives. Therefore, managers are forced to make a choice according to which objective they must be achieved or by what method they must satisfy the objective to be achieved. For example, if a manager chooses a method such as marginal cost transfer pricing, this motivates the manager's optimal short-term economic decision but undermines the concept of autonomy. Market-based transfer pricing is a situation where... . middle of paper......countries, especially developed countries like America, England and Australia etc. use this directive as a basis for monitoring internal transactions. This guideline also reflects the arm’s length pricing principle. It can be noted that countries like America have more than 300 pages on this subject. But the implementation of these regulations as a basis for controlling abusive transfer pricing is lagging in underdeveloped and developing countries. The harmful effects of the transfer policy could be limited if international coordination between countries' tax authorities was strengthened. Second, transfer pricing audits should be carried out to monitor and control the transfer methods used by the company. By constantly obtaining the report of each transfer policy used, tax authorities would be able to monitor and also reduce tax evasion through transfer pricing methods..