Transfer-Pricing is a very complex issue, but every company's accounts and accounting processes are scrutinised regularly by auditors who are independent. If companies are cheating through improper transfer pricing between international divisions, perhaps serious questions should also be asked of their auditors. Words like 'Enron' and 'Arthur Anderson' spring to mind.

I worked for the last fifteen years of my working life for a company with divisions in the USA, Asia, Australia and throughout Europe, and we had to be scrupulous in our intra-company transfer pricing - it was a part of our Company Accounting Standards, and it was a major part of our annual audit process.