UIOWA MANAGEMENT EXAM 2 2025 WITH 100% ACCURATE
SOLUTIONS
Forces for Internationalization – Answer ☑️Globalization –
tendency of firms to expand sales, manufacturing, and
ownership to new markets in other countries
-modern communication technology
-air travel
-corporate globalism
Pros and Cons of gobalization – Answer ☑️Pros:
-productivity grows
-living standards increase
-inflation is less likely (cheap)
-innovation (new ideas)
-access to new markets and new customers
-export jobs pay more
Cons:
-Americans lose jobs
,-fear losing jobs
-competition for american companies
-pay cut
-service and white collar job in danger
Internationalization Process – 5 big options –
Answer ☑️Stage 1: Exporting – selling domestically
produced products to customers in foreign countries
Stage 2: Cooperative contracts – an agreement in which a
foreign business owner pays a company a fee for the right to
conduct that business in his or her country
Stage 3: Strategic alliances – an agreement in which
companies combine key resources, costs, risks, technology,
and people
Stage 4: Wholly owned affiliates – foreign offices, facilities,
and manufacturing plants that are 100% owned by the
parent company
New Global Ventures – new companies that are founded
with an active global strategy and have sales, employees,
and financing in different countries
,2 types of cooperative contracts – Answer ☑️Licensing – an
agreement in which a domestic company, the licencor,
receives royalty payments for allowing another company, the
licensee to produce the licencor’s product, sell its service,
or use its brand name in a specified foreign market
Franchising – 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 at Mustang Jeans – Answer ☑️deals with
international business, does business the “american way”,
which turns off foreign business leaders
-the cultural imperative
-culture barriers and norms prevented american man and
Japanese man from doing business together
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
-the terms of the deal are more important than building a
business relationship
Hofstede’s dimensions – Answer ☑️-long-term vs. Short-
term orientation
-uncertainty avoidance
-masculinity vs. Femininity
-individualism vs. Collectivism
-power distance
Long-term vs. Short-term orientation –
Answer ☑️addresses whether cultures are oriented to the
present and seek immediate gratification or to the future and
defer gratification
Uncertainty avoidance – Answer ☑️the degree to which
people in a country are uncomfortable with unstructured,
ambiguous, unpredictable situations
SOLUTIONS
Forces for Internationalization – Answer ☑️Globalization –
tendency of firms to expand sales, manufacturing, and
ownership to new markets in other countries
-modern communication technology
-air travel
-corporate globalism
Pros and Cons of gobalization – Answer ☑️Pros:
-productivity grows
-living standards increase
-inflation is less likely (cheap)
-innovation (new ideas)
-access to new markets and new customers
-export jobs pay more
Cons:
-Americans lose jobs
,-fear losing jobs
-competition for american companies
-pay cut
-service and white collar job in danger
Internationalization Process – 5 big options –
Answer ☑️Stage 1: Exporting – selling domestically
produced products to customers in foreign countries
Stage 2: Cooperative contracts – an agreement in which a
foreign business owner pays a company a fee for the right to
conduct that business in his or her country
Stage 3: Strategic alliances – an agreement in which
companies combine key resources, costs, risks, technology,
and people
Stage 4: Wholly owned affiliates – foreign offices, facilities,
and manufacturing plants that are 100% owned by the
parent company
New Global Ventures – new companies that are founded
with an active global strategy and have sales, employees,
and financing in different countries
,2 types of cooperative contracts – Answer ☑️Licensing – an
agreement in which a domestic company, the licencor,
receives royalty payments for allowing another company, the
licensee to produce the licencor’s product, sell its service,
or use its brand name in a specified foreign market
Franchising – 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 at Mustang Jeans – Answer ☑️deals with
international business, does business the “american way”,
which turns off foreign business leaders
-the cultural imperative
-culture barriers and norms prevented american man and
Japanese man from doing business together
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
-the terms of the deal are more important than building a
business relationship
Hofstede’s dimensions – Answer ☑️-long-term vs. Short-
term orientation
-uncertainty avoidance
-masculinity vs. Femininity
-individualism vs. Collectivism
-power distance
Long-term vs. Short-term orientation –
Answer ☑️addresses whether cultures are oriented to the
present and seek immediate gratification or to the future and
defer gratification
Uncertainty avoidance – Answer ☑️the degree to which
people in a country are uncomfortable with unstructured,
ambiguous, unpredictable situations
