The theory of MNEs' cross-cultural management suggests that the performance of MNEs' cross-cultural management depends on the excellence of MNEs' managerial strategies. In turn, the fulfillment of managerial strategies depends on the excellence of culture management of MNE's in host countries. Finally, the performance of culture management is determined by the type of managerial philosophy with different world vision adopted by MNE leaders. S: The operation performance of Japanese MNEs' intra-trade effect strategy is as follows: a. The total intra-firm trade effect of Japanese MNEs was 2 trillions and 220.6 billions US dollars in year 2000, which was 2.6 times of the world trade amount directly made by Japan proper, US$859 billions. As a result, the true grand national world trade amount (trade made by Japan proper and oversea subsidiaries) was up to US$ 3 trillions and 79.6 billions. In other words, the evaluation of the economic development of a country must consider both the international competitiveness of the industries in home country and the competitiveness of the industries run by MNEs in the host country. b. In reacting to the threats of Special 301 Act from the US, Japanese MNE's subsidiaries in the US increased effect of replacement export to expand their market share in the US. The total amount of intra-firm trade effect made by Japanese MNEs' subsidiaries in the US was US$859.5 billions, which was 5 times as much as the trade amount between Japan and the US, US$214.7 billions. Japanese subsidiaries enhanced effect of lead export to the extent that this effect accounted for 97% of the export for Japan proper to the US. This helped sustain and expand Japan's market share in the US. c. In reacting to the fact that EU was the world's largest market, Japanese subsidiaries expand their market share in EU by enhancing intra-firm trade effect to US$472.7 billions, which was 4.7 times as much as the trade amount between Japan and EU, US$125.1 billions. M: what type of culture management Japanese MNEs located in Taiwan adopt in order to increase their operation performance. In order for MNEs' cross-cultural management to become the best management system for increasing the consensus of two cultures, and to increase the operation performance of subsidiaries, MNEs must adopt cross-cultural using the third culture management which integrates the advantages of using the first culture management and the second culture management. US and Japanese MNEs' subsidiaries in Taiwan value the cross-cultural using the third culture management most, their inventory turnover rates are higher than those of domestic enterprises in Taiwan. P: what type of managerial philosophy the leaders of MNEs should adopt in order to achieve as much as consensus among multiple different cultures. Only the managerial philosophy of peace culture can resolve the above-mentioned problems, and increase the performance of subsidiaries all over the world and the performance of MNEs' business strategies. The framework suggests that MNE leads must first hold the managerial philosophy of peace culture (P) so that they can increase the effect of management using the third culture (M) in managing their subsidiaries all over the world, and in turn enlarge the intra-firm trade effects of their subsidiaries all over the world (S).