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As part of this plan, it is repatriating production of the Panda, a small car, from Poland.
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The stronger local currency means money earned overseas buys fewer francs when it is repatriated.
But the barrier right now in terms of repatriating cash is that it is repatriated at the 35 percent level, he says.
A strong yen can make exports more expensive and therefore less competitive overseas and can erode profit earned overseas when it is repatriated as yen.
However, companies can defer paying U.S. tax on active foreign income until it is repatriated to the U.S. parent.
However, a deferral provision allows companies to delay tax payment on foreign income until it is repatriated back to the U.S.
To illustrate, if a U.S. corporation, in search of greener tax pastures, sets up a subsidiary in a low-tax locale such as Ireland, any income earned by the affiliate in Ireland is not subject to U.S. tax until it is repatriated to the U.S. in the form of a dividend, at which point it will be taxed at rates as high as 35%.
Because U.S. multinational companies are allowed to expense foreign costs as they are incurred and can wait to pay tax on foreign income until it is repatriated, they can avoid paying taxes that their domestic competitors must pay.
The painting appeared in headlines earlier this year when it was repatriated to its rightful heir, George Jorisch, after having been stolen by the Nazis during the second World War.
Pfizer is said to be keen to put to use some of its £40bn cash pile obtained from its foreign subsidiaries, which would trigger big tax bills if it was repatriated to the US to be paid in dividends.
Pfizer, the world's largest drug group, is said to be keen to use some of a £40bn cash mountain obtained from its foreign subsidiaries, which would trigger huge tax bills if it was repatriated to the US to be handed out in dividends.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com