Several years ago Donald Ball and Wendell McCulloch carried out an opinion survey of members of the Academy of International Business as to the ranking of international programs in U.S. business schools (JIBS, Spring/Summer 1984). It included 79 schools in the results.

This note reviews the results of four surveys related to the efforts of the AACSB to internationalize the curriculum of the business schools. The first, a survey of the 1071 participants in the 30 workshop/seminars which have been organized by the AACSB, showed that the workshops have been very beneficial for the participants and affected the courses they teach. The second survey, of all AACSB member schools, showed that most of them plan to internationalize their curriculums by introducing an international dimension into the core courses. But this raises the question of whether the faculty members are trained or prepared to do this. The third survey found that only 64 out of 564 AACSB member schools have one or more exchange programs with foreign business schools, and that only about 125 professors go overseas each year under the aegis of these programs. Finally, a fourth survey, of the 53 largest doctoral programs, indicated that only 17% of the graduates of our doctoral programs study any international courses during their graduate (masters and doctoral) studies. Thus, the next generation of faculty members will have difficulty in introducing any international content into the courses they teach.

This study investigates minimum risk-hedging ratios and the hedging effectiveness of forward foreign exchange markets for the British pound and the German mark during the period January 4, 1982—April 30, 1984. These currencies are selected because of their importance in foreign exchange markets and their use as international currencies. Evidence is strong that the presence of autocorrelation not only overstates optimal hedge ratios but also overstates hedging effectiveness for these two currencies. The lower optimal hedging ratios found in this study than in earlier works is thus largely attributed to the adjustment for autocorrelation.

The relevance of paradigms focusing on rational and sociopolitical power in strategic decision-making is explored among three country clusters. The predictive validity of a model incorporating political and rational sources of power is established across the clusters. Moreover, country clusters appear to moderate the power relationships.

Many financial managers think that foreign exchange hedging decisions are mainly a choice between to hedge or not to hedge. Nevertheless, previous researchers applied Ederington's portfolio approach and found that even for risk minimization, a complete hedge does not lead to the lowest risk. Instead, there exists an optimal hedging ratio which yields the lowest variance. However, the discussions of these former studies were concentrated on a single foreign currency cash flow. In the real world, financial managers are more likely to expect multiple cash flows arriving at different times even for the same foreign currency. This paper therefore discusses whether financial managers should hedge these cash flows independently or combine them under one integrative hedging scheme. It is shown that, while the independent approach does not lead to the lowest risk, its hedging effectiveness is close to that of the integrative approach. Given the time and resource constraints of financial managers, the simpler independent approach appears to be a better choice.

This paper extends the internalization approach to the theory of the multinational enterprise (MNE) to include an expanded role for equity joint ventures. Using the transaction cost paradigm of Williamson, this paper explains why joint ventures may sometimes be preferred over wholly owned subsidiaries. Also presented is empirical work on joint-venture performance in developing countries which demonstrates that under certain conditions joint ventures can be the optimal mode of foreign direct investment.