Intracompany trade

Intracompany trade

Transactions between or among subsidiaries that are part of the same parent company.

Intracompany Trade

A transaction that occurs between two subsidiaries of the same parent company. For example, if a supplier sells to a retailer, and both are owned by the same conglomerate, this is said to be an intracompany transaction. It should not be confused with an intercompany transaction.
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The elimination of the manufacturing tariffs would entail considerable savings for intracompany trade alone.