This paper illustrates the complexity, ambiguity, and conflict inherent in the multinational-corporation system. These problems occur because each of the human components (headquarters, expatriate managers, host-country nationals, and host-country organizations) must adapt to unique environmental demands from five critical sectors in the parent and host countries. The goals and patterns of each component are usually incongruent with those of the other components. Therefore, a planned, systematic change that includes all four human components is proposed. Appropriate modifications to the standard action-research technique are recommended.