This question is about intercompany vs intracompany.

What does intracompany trade mean?

By Zippia Team - Dec. 7, 2022

An intracompany trade is when two subsidiaries of the same company do business with one another. For instance, Lego selling its products to a Lego store. Both are owned by the same parent company, but "trade" or business transactions are still happening.

This can only happen if a company is vertically integrated. Other examples are a company that owns a parts manufacturer purchasing their parts from their own subsidiary.

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