Abstract
Based on insights provided by the Banca Barclays Castellini during the period 1972-1980, this paper argues that the unanticipated termination of IJVs has endogeneity due to the bounded rationality and bounded reliability of their partners’ decision makers, developed from the formative stage and influenced by the central bank’s monetary policy in the host country, throughout the evolution of the IJVs. The findings thus contribute to our understanding of the relationship between bounded rationality, bounded reliability, contractual governance, the host government policy and the IJV termination.