1 | P a g e | © copyright 2024/2025 | Grade A+
UIowa management Exam 2 Questions &
100% Correct Answers
Forces for Internationalization
✓ ~~> 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
Master01 | September, 2024/2025 | Latest update
, 2 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> 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
✓ ~~> 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
Master01 | September, 2024/2025 | Latest update
, 3 | P a g e | © copyright 2024/2025 | Grade A+
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
✓ ~~> 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
Master01 | September, 2024/2025 | Latest update
, 4 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> 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
✓ ~~> Cultures in which nonverbal and situational messages convey
meaning
-relationship more important than terms
Low context cultures
✓ ~~> 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
✓ ~~> -long-term vs. short-term orientation
-uncertainty avoidance
-masculinity vs. femininity
Master01 | September, 2024/2025 | Latest update
UIowa management Exam 2 Questions &
100% Correct Answers
Forces for Internationalization
✓ ~~> 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
Master01 | September, 2024/2025 | Latest update
, 2 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> 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
✓ ~~> 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
Master01 | September, 2024/2025 | Latest update
, 3 | P a g e | © copyright 2024/2025 | Grade A+
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
✓ ~~> 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
Master01 | September, 2024/2025 | Latest update
, 4 | P a g e | © copyright 2024/2025 | Grade A+
✓ ~~> 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
✓ ~~> Cultures in which nonverbal and situational messages convey
meaning
-relationship more important than terms
Low context cultures
✓ ~~> 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
✓ ~~> -long-term vs. short-term orientation
-uncertainty avoidance
-masculinity vs. femininity
Master01 | September, 2024/2025 | Latest update
