Global production rationalization typically leads to a heavy volume of intercompany fund flows. By transferring only a netted amount of these payments, significant savings can be realized in the form of reduced foreign exchange spreads, float, and other transaction costs. However, if this netting is done by paper and pencil, opportunities to reduce transfer costs may be missed, especially where there is a complex pattern of cross-border transactions. The purpose of this paper is to show how mathematical programming can be used to design a netting system capable of minimizing the total costs involved in settling interaffiliate accounts.

This paper presents a methodology for determining the true costs of alternative sources of financing for the multinational corporation when the risk of exchange rate changes is present and different tax rates and regulations are in effect. The cost formulas presented can then be used to calculate the cheapest financing source given the expected exchange rate changes.

This research explores expatriate assignments from a career development perspective. First, the article examines the impact of five organization-level career development programs and policies on expatriate effectiveness. Then, it explores the impact of five individual-level career management strategies on the success of expatriate transitions. Data from 118 expatriates in Saudi Arabia, Europe, South America, and Japan are presented to examine these career development issues.

This editorial identifies a number of potential theory-related weaknesses in manuscripts, some more general in nature, others specific to international business (IB) research. It provides a brief critique and suggestions on how to overcome common problems in motivating research, framing contributions, reviewing literature, benefiting from the review process, and other issues of conceptual development. It also addresses questions particularly critical to IB research including multidisciplinarity, utilizing international context and enhancing theoretical impact. We conclude with specific guidelines on how to emphasize theory, thereby enhancing contribution and impact, in crafting and revising submissions to JIBS.

The management of multinational operations is often required to balance conflicting priorities between responsiveness at the national subsidiary level and central coordination for global competitiveness. Such balancing requires that relevant data be brought to bear on decisions, that consensus be created among key managers, and that relative power among them be carefully balanced. In large complex MNCs the balancing process can be institutionalized through the structuring of relationships between headquarters and subsidiaries.

The growth of international business (IB) and concerns about the relevance of IB research indicate the need for managerial input on the topic. A survey of 108 U.S. CEOs reveals that IB issues are an important part of their strategic agenda. Four types of IB issues are identified which reveal that American CEOs appear to be taking a proactive stance regarding the international arena. The CEOs were also found to hold diverse perceptions of IB issues. The implications of these findings are discussed

This article examines issues of level in the study of joint venture trust. In particular, we explain how international joint venture (IJV) trust can be conceptualized and measured at the person, group, and firm levels. To do this, we (1) provide a definition of IJV trust applicable to persons, groups, and firms, (2) promote alignment of levels of theory and measurement through the use of a 3×3 approach to guide researchers in identifying the level at which they are theorizing and the proper level of measurement, and (3) propose operational measures of IJV trust across levels and dimensions in order to lay a solid foundation for theory testing.

Although biculturals represent a growing demographic, the nascent literature on biculturals has not addressed their cross-cultural leadership capabilities or effectiveness. Attributional patterns and variations across cultures are crucial, and call for higher attributional complexity (AC) and attributional knowledge to reduce cultural distance. This study provides a systematic theoretical connection between biculturals and their higher levels of AC and attributional knowledge, which account for their cross-cultural competence. This connection is then linked to attributional processes, drawing from recent literature on attributional models of leadership. The proposed theoretical model posits that biculturals have higher levels of AC and attributional knowledge, which helps them make more accurate attributions, which are also less culturally biased. Managerial behaviors resulting from these attributions lead to cross-cultural leadership effectiveness, because they absorb uncertainty on the part of subordinates. The proposed model addresses both cognitive and emotional competency elements of cross-cultural leadership. We contribute to the international business literature by providing a theoretical model for examining factors critical to the cross-cultural leadership effectiveness of leaders who have more than one cultural profile. Managerial implications for selection and training of international executives are discussed in the context of culture-specific and culture-general capabilities. Contributions, limitations, and boundary conditions are also discussed.