University of Illinois at Chicago Circle. Special thanks are given to Professor E. Eugene Carter for his help in editing an earlier version of this paper. The paper draws heavily on a monograph published recently by the author, Foreign Exchange Management in U.S. Multinationals, D.C. Heath and Company, Lexington, Massachusetts, 1980. This research was supported in part by a grant from the Rockefeller Foundation; the conclusions are those of the author and do not represent the opinion of the Rockefeller Foundation.