The relationships of selected distal and colocated members of a global corporation were examined in terms of the leader member exchange (LMX) theory. Team members in Indianapolis, Indiana and Geneva, Switzerland, with colocated or distal leaders, were asked to complete an LMX 7 survey to assess the group’s perception of its LMX relationship. A statistically significant difference (p = .000) was found between the LMX perceptions of the colocated and distal non-management members. A related area of study involves the efficacy beliefs of these groups. The researcher surveyed the members to determine if they had a perception of low collective efficacy if not colocated with their leader. The Virtual Team Efficacy (VTE) tool developed and validated by Hardin (2005) was used to measure the perception of collective efficacy. No significant difference in the perceptions of Virtual Team Efficacy was found. A significant positive relationship was found between LMX and VTE. For the colocated group, this was moderately positive (Spearman rho = .326); for the distal group, it was weakly positive (Spearman rho = .270). This work contributes to the literature on virtual team relationships by expanding on the LMX relationships of virtual groups and their efficacy beliefs.