This study builds upon previous control research to propose a model of formal controls used in managing activities performed in foreign markets. Theoretically derived contingency relationships are also proposed to assess the performance consequences of different formal control types. The findings support the importance of internal and external sources of uncertainty in determining the type of control used. Partial support was also found for the premise that the fit between the type of control used and the type of uncertainty perceived will contribute to superior performance.With increasing globalization of the competitive environment, the dual imperatives of global integration and local responsiveness are becoming more vital than ever before for organizational survival and growth [Prahalad and Doz 1987; Roth and Morrison 1990]. Hence, head-office managers at multi-product and multi-country firms are faced with the increasingly complex task of managing geographically dispersed yet interdependent activities. A critical part of this management task involves the formal control of operationally, geographically and culturally differentiated activities to prevent system suboptimization and provide direction for the goals of the organization as a whole to be reached. The effective and efficient management of interdependent activities across geographic locations necessitates sophisticated formal controls that can respond to local differences and contingencies while taking advantage of global opportunities. The challenge facing managers is to design a formal control which induces desired performance while inhibiting dysfunctional