A functional analysis is the very essence of transfer pricing. Without a proper functional analysis, it is not possible to price an inter-company transaction.

After a short introduction this video takes you through the Functional analysis introduction we have discussed in lecture II.D.1. If you have just seen that video, feel free to skip the last part of this video. However, if it has been a couple of days since you looked at it, we suggest you go through it one more time, just to really strengthen those neuron paths as this the basis of so much more we are going to be doing.