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Considers the relationship between the expatriates and locals which affect their working together and therefore the effectiveness of their companies. Suggests that the area of institutional arrangements that sets the pattern of the relationship, the tone of communications and the categorization of co‐workers in conflicting groups is virtually untouched. Attempts to examine the variables that constitute the formation, evolution and impact on corporate effectiveness. Offers solutions such as localization of personnel, equality, integration and sharing of cultures.

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