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 1 / 4
-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
- / 4
- 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
- / 4
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
- / 4