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To: Sam who wrote (568)	9/3/1998 4:30:00 PM
From: Henry Volquardsen	Read Replies (3) \| Respond to of 3536

I'm sure somewhere in the Commerce dept they calculate the deficits on a variety of cuts. As far as how the prices are determined and what gets accounted where, that can sometimes get quite contentious. Various governments are always in disputes with industry regarding the setting of transfer pricing. Business clearly trys to transfer as much of the profit in the product to low tax environments while the local governments are trying to capture as much of the profit as locally taxable. There have even been problems with allocating transfer prices between states within the US. This is a very complicated process.