AN INTRODUCTION TO MANAGEMENT
SCIENCE UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS COMPLETE
STUDY GUIDE
●● Internationalization Process
Answer: Stage 1: exporting-sell products domestically manufactured in
foreign market.
Stage 2: cooperative contracts- licensing and franchise
Stage 3: strategic alliances-split risk and profits
Stage 4: wholly owned affiliates-buy foreign company
●● licensing
Answer: an agreement in which a domestic company, the licensor,
receives royalty payments for allowing another company, the licensee, to
produce the licensor's product, sell its service, or use its brand name in a
specified foreign market.
●● franchise
Answer: a collection of networked firms in which the manufacturer or
marketer of a product or service, the franchiser, licenses the entire
business to another person or organization, the franchisee.
,●● Problem @ Mustang Jeans
Answer: The American did not take the time to get to know and build a
relationship with the Japanese before trying to get him to sign the
contract. The American did not understand Japanese culture (high
context and long-term orientation) and there was a cultural barrier.
●● High-context cultures
Answer: cultures in which nonverbal and situational messages convey
meaning. (relationship more important than terms)
●● low-context cultures
Answer: cultures in which words convey primary meaning. (nonverbal
messages are secondary)
●● tariff
Answer: a direct tax on imported goods
●● nontariff barriers
Answer: nontax methods of increasing the cost or reducing the volume
of imported goods.
●● Why do managers need to know about tariffs and trade?
, Answer: free trade agreements create new business opportunities, they
also intensify competition, and addressing that competition is a
manager's job.
●● characteristics of attractive foreign business climate
Answer: -Growing markets
-Choosing an office/manufacturing location
-Minimizing political risk
●● preparing for an international assignment
Answer: -Field simulation
-language and cross-cultural training
-adaptability screening
-cultural simulations
-Documentary training
●● What is a mongrel?
Answer: a person who is comfortable in several different cultures. "I feel
like I belong anywhere."
Why is this a good thing?
SCIENCE UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS COMPLETE
STUDY GUIDE
●● Internationalization Process
Answer: Stage 1: exporting-sell products domestically manufactured in
foreign market.
Stage 2: cooperative contracts- licensing and franchise
Stage 3: strategic alliances-split risk and profits
Stage 4: wholly owned affiliates-buy foreign company
●● licensing
Answer: an agreement in which a domestic company, the licensor,
receives royalty payments for allowing another company, the licensee, to
produce the licensor's product, sell its service, or use its brand name in a
specified foreign market.
●● franchise
Answer: a collection of networked firms in which the manufacturer or
marketer of a product or service, the franchiser, licenses the entire
business to another person or organization, the franchisee.
,●● Problem @ Mustang Jeans
Answer: The American did not take the time to get to know and build a
relationship with the Japanese before trying to get him to sign the
contract. The American did not understand Japanese culture (high
context and long-term orientation) and there was a cultural barrier.
●● High-context cultures
Answer: cultures in which nonverbal and situational messages convey
meaning. (relationship more important than terms)
●● low-context cultures
Answer: cultures in which words convey primary meaning. (nonverbal
messages are secondary)
●● tariff
Answer: a direct tax on imported goods
●● nontariff barriers
Answer: nontax methods of increasing the cost or reducing the volume
of imported goods.
●● Why do managers need to know about tariffs and trade?
, Answer: free trade agreements create new business opportunities, they
also intensify competition, and addressing that competition is a
manager's job.
●● characteristics of attractive foreign business climate
Answer: -Growing markets
-Choosing an office/manufacturing location
-Minimizing political risk
●● preparing for an international assignment
Answer: -Field simulation
-language and cross-cultural training
-adaptability screening
-cultural simulations
-Documentary training
●● What is a mongrel?
Answer: a person who is comfortable in several different cultures. "I feel
like I belong anywhere."
Why is this a good thing?
