The importance of international expertise to American international firms, the kinds of international expertise needed by managers, and how these skills are acquired were studied. In addition to providing information for business, the findings may help colleges in preparing international studies graduates. Using either interviews or questionnaires, views were elicited from 233 managers in 126 very large companies: Fortune 500 industrial firms and money center banks doing business abroad. International expertise was defined as knowledge of social, economic, political, and legal systems. The ability to operate abroad, interpersonal skills, and country knowledge were rated as important by the managers, as was understanding differences among countries. Most managers felt international expertise was important but not as essential as technical, functional, and organizational skills. Foreign language ability was also seen as an asset but not critical. Managers noted specific values of language skills, including cultural understanding and finding information. Managers gained knowledge of other countries largely through business travel, overseas assignments, and experience abroad (particularly interpersonal interaction), as well as by reading. Contacts that can provide additional country knowledge were also identified. (SW)