In addition to the problem of the high levels of profit repatriation when there is a fear of devaluation in a country, another tactic which can be used by the transnational enterprise is to defer payment from its affiliates in the country concerned to the subsidiary or perhaps even to the parent company for goods that had been purchased from it. In addition, the subsidiary could be required to make immediate payment for all purchases made from affiliates, instead of permitting a normal 30 or 90 day payment period.
Furthermore, transnational corporations tend to move funds into and out of currencies to maximize their profits by taking advantage of interest rate differentials and tax advantages which are available in one country compared with another. This potential has been greatly enhanced by dramatic changes in international banking and consortia arrangements. Such action also contributes to the fundamental disequilibria in the balance of payments of some major industrial countries.