It was found that the mean relative standing of various country- contingents in terms of first year grades tended to correspond more closely with relative standing on the less valid verbal measure than with standing on the more valid quantitative measure. On conclusion was that for these samples of non-native speakers of English, differences in English-language background affected (artifactually depressed) both performance on the GMAT verbal measure and first-year performance in the MBA programs. Findings suggested that a set of subgroup prediction systems would likely be better than any general system for foreign MBA students. (80pp.)