As multinational corporations (MNCs) are extending their international operations they need to examine issues such as the localisation of human resource policies and management, and the effective use of local and expatriate managers. Examination of expatriate studies indicates a lack of attention given to the relationships between expatriate managers and local managers or the perspectives of local managers working in MNCs. This thesis attempts to fill these gaps by focusing on the cross-cultural interactions between expatriate and local managers. This thesis addresses the importance of positive cross-cultural understanding between Japanese expatriate managers and local managers in Japanese subsidiaries in Australia, and its effect on work-related outcomes such as job satisfaction and commitment to the organisation. It identifies macro and micro factors which are associated with levels of job satisfaction and commitment of Japanese expatriate managers and Australian managers with special focus on economic functions of industry, communication, and mutual perceptions. Conceptual models for predicting organisational commitment for Japanese expatriate and Australian managers are developed, and the validity of the models is empirically tested. ¶ ...