COPING WITH UNCERTAINTY IN INTERNATIONAL BUSINESS BRIANCE MASCARENHAS*

Abstract. International business, as compared with domestic business, is usually charac-terized by increased uncertainty. A study of 10 multinational companies uncovered several methods of coping with uncertainty. This paper focuses on 2 methods which may not be apparent: control and flexibility. A framework of analysis suggesting appropriate methods for coping with uncertainty is also developed. * Traditional planning has leaned toward assuming that the future is predict-able [Paul, Donavan, and Taylor 1978]. Presumably, firms, through planning, would be justified in making present commitments after having predicted what was going to happen in the future. Steiner, who was writing during a period of rel-ative environmental stability in the 1960s, stated: "In recent years...surprising strides have been made in developing effective methods of prediction. Much re-mains to be done, but one thing is clear: the area of unpredictable events is rapidly narrowing " [Steiner 1969, p. 207]. The 1970s introduced a period of rapid discontinuous change. Among the various sources of environmental instability that affected the world in general and busi