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MULTINATIONALS AND PUBLIC POLICY CONCENTRATION
MULTINATIONALS AND PUBLIC POLICY CONCENTRATION
MULTINATIONALS AND PUBLIC POLICY CONCENTRATION
MULTINATIONALS AND PUBLIC POLICY CONCENTRATION
MULTINATIONALS AND PUBLIC POLICY CONCENTRATION
MULTINATIONALS AND PUBLIC POLICY CONCENTRATION
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MULTINATIONALS AND PUBLIC POLICY CONCENTRATION

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  • 1. THE BUSH SCHOOL OF GOVERNMENT AND PUBLIC SERVICE Master’s Program in International Affairs CONCENTRATION IN MULTINATIONAL ENTERPRISES AND PUBLIC POLICY Coordinator: Professor Lorraine EdenThe Multinational Enterprises and Public Policy Concentration is sponsored by theInternational Economics and Development (IE&D) track; the concentration is open to allstudents in the Master’s Program in International Affairs at Texas A&M University, both IE&Dand NS&D (National Security and Diplomacy). The purpose of this concentration is to preparestudents to deal with the array of issues associated with the sizable and growing portion ofinternational trade and investment involving multinational enterprises (MNEs) in the globaleconomy. Subjects of concern include: MNEs, international trade and foreign direct investment(FDI); managing the MNE; MNE-state relations; public policies towards multinationals and FDI;MNEs, international development and emerging markets; and international transfer pricing.MPIA graduates with this concentration typically look for employment in the public-privatesector interface, for example, in government departments or agencies that regulate or workwith private corporations (e.g. Department of Commerce, USAID) or promote internationaltrade and investment (Chambers of Commerce, US embassies overseas). Other alternativesrange from working for: large corporations in their business-government relations or publicaffairs departments; NGOs that partner with private sector firms in developing countries;consulting firms and political action committees in business-government relations; and mediawriting and reporting about international business news. The range is enormous butcompetition for jobs in this area is intense; specialized skills are therefore very important forcareer placement.At least three courses are needed to complete the Multinational Enterprises and Public Policyconcentration; one course (INTA 629, Multinational Enterprises) is required. Some of thepossible courses available in this concentration are listed below; students may substitute othercourses with the approval of the Coordinator, the student’s Faculty Advisor and the MPIADirector; see also the list of recommended courses for the Transfer Pricing Module.List of suggested courses for completing the MNEs and Public Policy Concentration:  INTA 629: Multinational Enterprises (cross-listed as MGMT 667) - REQUIREDMultinational Enterprises and Public Policy Concentration, 2010-2012 1
  • 2.  INTA 625: International Trade Policy Analysis  INTA 689: International Transfer Pricing (cross-listed as MGMT 689)  INTA 607: World Cultural Geography  INTA 624: International Economic Development (should only be included if the student is not completing the International Economic Development concentration)  PSAA 640: Energy Policy and Security  PSAA 644: Business and Public Policy (cross-listed as MGMT 610)  FINC 645: International Finance  MGMT 679: International Business Policy  MGMT 680: Business PolicyStudents in the IE&D track already take an advanced quantitative research methods course(BUSH 632) as one of their requirements. Students who are not required to take this course aspart of their program are strongly encouraged to take BUSH 632 or equivalent if they areregistering for the Multinational Enterprises and Public Policy concentration.  BUSH 632: Quantitative Methods in Public Management II INTERNATIONAL TRANSFER PRICING MODULEWithin the Multinationals and Public Policy Concentration, there is a module specifically forstudents interested in transfer pricing as a career option. Students may complete this modulewith or without a transfer pricing internship.Module Option A: International Transfer Pricing ModuleTo complete the International Transfer Pricing Module, without a transfer pricing internship, a studentmust successfully complete the following four graduate-level courses (or acceptable substitutes) for atotal of twelve (12) credit hours.1. MGMT 663 / INTA 689: International Transfer Pricing (old number MGMT 689/INTA 689). Students may substitute another Texas A&M graduate-level course with permission of Prof. Eden if the course has significant and substantial content focused on transfer pricing and intrafirm trade.2. A graduate-level course on the multinational enterprise. The recommended course is MGMT 667/INTA 629: Multinational Enterprises. Students may substitute another Texas A&M graduate course with permission. Note however that courses on the international environment facing business or on business strategy for domestic firms are not acceptable substitutes; the course must focus on the multinational enterprise. Possible alternatives may include:  MGMT 679: International Business Policy  MGMT 678: International Management3. A graduate-level course in Accounting. The recommended course is ACCT 647/FINC 647: Financial Statement Analysis. Note that ACCT/FINC 647 requires students to have had at least one prior accounting course; the typical prerequisite is ACCT 640 Accounting Concepts and Procedures orMultinational Enterprises and Public Policy Concentration, 2010-2012 2
  • 3. ACCT 610 Financial Accounting (MBA students only). Students may substitute another Texas A&M graduate course with permission from Prof. Eden. Possible alternatives may include:  ACCT 610: Financial Accounting (available to MBA students only)  ACCT 620: Management Accounting and Control  ACCT 621: Corporate Taxation  ACCT 640: Accounting Concepts and Procedures  ACCT 646: International Accounting4. A graduate-level course in Applied International Trade, Finance or Taxation. The recommended course is INTA 625: International Trade Policy. Students may substitute another graduate-level Texas A&M course with permission from Prof. Eden. Note, however, that the course must be an applied (quantitative) course in international trade, finance or taxation, not a pure theory course. Possible alternatives may include:  ACCT 621: Corporate Taxation  AGEC 622: Agribusiness and Analysis and Forecasting  FINC 613: Finance for the Professional II (available to MBA students only)  FINC 645: International Finance  INFO 667: Logistics and Distribution Management  INTA 689: Finance for Development  INTA 689: Financial Instruments and RegulationsModule Option B: International Transfer Pricing Module with InternshipTo complete the International Transfer Pricing Module with Internship, a student must successfullycomplete the requirements for the International Transfer Pricing Module and also complete a transferpricing internship.Transfer pricing internships normally take place during the summer semester, but can take place inother semesters. The internship should, if possible, be taken after the student has completed MGMT663/INTA 689 International Transfer Pricing. The student must work fulltime for 4-6 weeks in thetransfer pricing area for a private sector firm or government agency. Most internship placements arewith the transfer pricing groups of the Big Four accounting firms, the US Internal Revenue Service oreconomic consulting firms, but other placements (e.g. outside of the United States or with law firms) arealso possible. FYI, the Big Four normally recruit for summer internships in October-November and inJanuary-February, for July-August internships. If fulltime employment offers are made, they are typicallyat the end of the internship, with start dates after the student’s graduation.Recommended Components for the Transfer Pricing Module (Options A and B)In addition to courses outlined above, the following courses and/or activities are also highlyrecommended. They provide additional depth and/or breadth and increased marketability for thestudent in terms of successful placement.1. A graduate-level course in applied research methods. The course should cover statistics and basic regression analysis, and use a statistical package such as STATA or SAS for problem solving. The recommended course is BUSH 632: Quantitative Methods in Public Management II, but any other graduate-level course that covers basic regression analysis and uses a statistical package such asMultinational Enterprises and Public Policy Concentration, 2010-2012 3
  • 4. STATA or SAS can be substituted. A course in Advanced Microsoft Excel is also recommended.2. Excellent English writing, speaking and presentation skills are a “must” for successful job placement in transfer pricing. Students who need remedial training are strongly encouraged to upgrade their written and oral business English skills before beginning the internship/job search process. Please see Prof. Eden for information on testing and remedial training materials.3. Specialized courses relevant to a career in transfer pricing are also useful. Examples include courses in international tax law, asset valuation, risk measurement, supply chain management, particular industries such as oil and gas or information technology, negotiations or foreign languages.4. Soft skills are also very important for successful placement in transfer pricing. Chief among these are: (1) strong logical reasoning abilities and problem-solving skills, and (2) the ability to lead and work well with others on team consulting projects and with clients. Students are encouraged to take courses that enable them to practise these skills.Please schedule an appointment with, or email, Prof. Lorraine Eden (leden@tamu.edu) if youare interested in the Multinational Enterprises and Public Policy concentration or theInternational Transfer Pricing Module within this concentration and want to discuss this further.You might also find it useful to talk to current Bush School students who are in the MNEs andPublic Policy Concentration or the Transfer Pricing Module.Lorraine EdenProfessor of Management and Associate Faculty, Bush SchoolTAMU 4221, Mays Business School415D Wehner BuildingTexas A&M UniversityCollege Station, TX 77843-4221Phone: 979-862-4053 Fax: 979-845-9641Email: leden@tamu.edu WWW: http://www.voxprof.comTransfer Pricing Aggies: http://www.linkedin.com/groups?mostPopular=&gid=3419288Last updated: April 4, 2011Multinational Enterprises and Public Policy Concentration, 2010-2012 4
  • 5. Note from Professor Eden about Transfer Pricing as a Career OptionHowdy! I have been teaching transfer pricing (TP) as a component in my undergraduate andgraduate classes for some years now, and began actively working to place students in fulltimecareers in transfer pricing starting in 2006. To date, I have placed about three dozen students insummer internships and fulltime positions as TP professionals. Most work for the Big Fouraccounting firms, but some are with smaller accounting firms, international law firms, andmultinationals large enough to have their own in-house TP staff. In addition, I’ve placedstudents in summer internships with the Internal Revenue Service and the Bureau of LaborStatistics in Washington, DC. I have former students working in places as varied as Beijing,Berlin, Dallas, Houston, Los Angeles, New York, San Francisco and Washington DC.A transfer price is the price of a product that moves within the multinational enterprise, fromone component of the MNE network (the parent or an affiliate) to another component of thesame network. Transfer pricing is the setting of these prices so as to comply with governmentregulations (especially corporate income tax regulations) and internal motivations such asmotivating managers and efficient resource allocation.I think of transfer pricing as a bit like the metaphor of the elephant where each of theindividuals who looked at the elephant saw different things – a trunk or leg or eyes or the tail.The right price can depend on which part of the “elephant” you are looking at. Because pricingis such an integral part of what multinationals do, determining the right price for related partytransactions requires an understanding of the “whole elephant”, not only economics, but alsoof management, finance, accounting, law, international business, strategy and tax.Students from the International Economics and Development (IE&D) track in the MPIA programbring a very useful lens to studying the “elephant” because of their broad training in all aspectsof the multidivisional firm. National Security and Diplomacy (NS&D) students, particularly thosestudents interested in money laundering, forensic accounting, fraud and illegal financial flows,will also find the Transfer Pricing course useful training for those career paths.In terms of available materials and study options:1. I will be teaching my Transfer Pricing course again in Fall 2011, on Mondays and Wednesdays from 4:35 to 5: 50 pm. In the class, we study the most recent scholarly and professional materials on transfer pricing. Students prepare and argue mock court trials, based on real transfer pricing court cases, which are judged by transfer pricing professionals. As another assignment, each student does an in-depth interview of a transfer pricing professional. Students have a major empirical assignment. This is a tough class as my purpose is to train students to go immediately into a full-time professional transfer pricing career after graduation.2. In addition to the course, I maintain the Transfer Pricing Forum on the TAMU eLearning website. The Forum is an extracurricular activity that connects all of my on-campus transferMultinational Enterprises and Public Policy Concentration, 2010-2012 5
  • 6. pricing students, whether they are currently taking a class from me or not. On the Forum are my course materials, job and internship materials, etc. Announcements of new job and internship opportunities are posted here, along with postings of visiting speakers, etc.3. In September 2010, I created a closed group on LinkedIn. Transfer Pricing Aggies is designed as a networking group to link my current students with Aggies who are now working professionally in transfer pricing and related areas; we now have about 60 members.4. I also run a Transfer Pricing group on Facebook with about 300 members.5. In years when I do not teach the Transfer Pricing course, I run a one-day intensive Transfer Pricing Boot Camp, with former students and senior transfer pricing experts as speakers.6. Normally, I also organize two or three brown bag seminars each year with senior transfer pricing professionals from the private and government sectors who come in to talk about the latest issues. They normally also conduct first-round interviews for summer internships and fulltime placements.7. From time to time, my students and I get together outside of class to “test drive” and practice on new software programs and datasets in transfer pricing; e.g., we have two dozen electronic “seats” for Thomson Reuters’ Transfer Pricing One Source Documenter, which won the 2010 Tax Awards as the most innovative tax product.Texas A&M is one of the very few places in the world where you can study transfer pricing. Ifyou have a potential interest in transfer pricing either as a career option, or more generallybecause you are interested in how MNEs work and want to understand them better, or simplybecause this will stretch you in a different direction than your other courses, do think about thisoption. If you’re interested in a career in government where regulating (e.g. IRS) or workingwith MNEs (e.g. US Embassies) is part of your job description, a law career in international tax,or a consulting career working with the Big Four or a boutique economics firm, transfer pricingmay be a good path for you. Or at least an option to put in your “back pocket” should otheroptions not work out! Some articles and websites on transfer pricing: http://www.nera.com/image/PUB_GlobalCrisis_TP_Mar2010.pdf http://www.cfr.org/publication/21777/us_multinationals_and_tax_reform.html http://www.wallstreetoasis.com/forums/jp-morgan-finance-vs-ey-transfer-pricing- consultant http://www.pwc.com/gx/en/tax/transfer-pricing/index.jhtml http://webcast.ey.com/thoughtcenter/default.aspx?seriesunid=%7B9a27a98c-314b-422d- ab24-c27379e5fbec%7D&prog=%7B53d7246a-c10d-4820-b092-9bbbc1411735%7D http://www.deloitte.com/view/en_GX/global/article/87f08ed08affd110VgnVCM100000ba4 2f00aRCRD.htm http://www.kpmg.com/Global/en/IssuesAndInsights/RSSFeeds/Pages/Global-Transfer- Pricing-Services.aspxMultinational Enterprises and Public Policy Concentration, 2010-2012 6

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