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Managing knowledge flows in MNCs: Elastic Employment §Contracts presents an original model for creating an §internal mechanism to prevent knowledge stickiness §and promote the internal flow of positive knowledge §between the subsidiaries of a multi-national §corporation. This model, the Elastic Employment §Contract integrates well-known variables from the §fields of international management, compensation and §principal-agent theory. This study contributes to §the literature on international management and to §the research methods for studying international §business. Its conclusions bring an interesting §economic result to light and are very relevant for §readers concerned with managerial compensation. The §Elastic Employment Contract described in this book §is an efficient internal mechanism for MNCs that §want to promote a constant flow of knowledge with §positive value between subsidiaries; it will help §them design more effective employment contracts.