MANAGEMENT EXAM 2 STUDY GUIDE 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Internalization Process Answer: Stage 1: Exporting
Manufacture products and ship them abroad
Stage 2: Cooperative contracts
Franchising/Licensing
Stage 3: Strategic alliances
Companies combine resources/technology to share costs and split profits
Stage 4: Wholly owned affiliates
OR Global new ventures**
◉ Two different types of cooperative contracts Answer: Licensing and
franchising
◉ What was the problem at Mustang Jeans? Answer: -Trying to sell
jeans in a foreign country
-Doesn't understand importance in building a relationship
-Not understanding cultural differences
,◉ High vs. Low Context Cultures Answer: High: nonverbal and
situational messages convey meaning
-Relationship more important than terms
-Emphasize developing interpersonal relationships
-(Asia, Europe, South America)
Low: words convey primary meaning
-Nonverbal messages are secondary
-The terms of the deal are more important than building a business
relationship
-Straightforward, concise, and efficient
-United States
◉ What are Hofstede's dimensions? Answer: Long-term vs. Short-term
orientation
-How far into the future are people thinking vs living in the now,
enjoying the present
Uncertainty avoidance
-To what extent are people okay with uncertainty vs prioritizing
security/safety
Masculinity vs. Femininity
, -To what extent does a country value assertiveness vs building
relationships, nurturing others
Individualism vs. Collectivism
-Expect individuals to achieve on their own vs with their group
Power distance
-People in society willing to accept hierarchies or distributions
◉ Definition of tariff and non-tariff trade barriers Answer: Tariff- a
direct tax on imported goods
Nontariff- barriers non tax 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 and also
intensify competition, and addressing that competition is a manager's job
◉ Characteristics of an attractive foreign business climate Answer: 1.
Growing markets
-purchasing power
-foreign competitors
2. Choosing an Office/Manufacturing Location
-Qualitative factors
QUESTIONS WITH ANSWERS GRADED A+
◉ Internalization Process Answer: Stage 1: Exporting
Manufacture products and ship them abroad
Stage 2: Cooperative contracts
Franchising/Licensing
Stage 3: Strategic alliances
Companies combine resources/technology to share costs and split profits
Stage 4: Wholly owned affiliates
OR Global new ventures**
◉ Two different types of cooperative contracts Answer: Licensing and
franchising
◉ What was the problem at Mustang Jeans? Answer: -Trying to sell
jeans in a foreign country
-Doesn't understand importance in building a relationship
-Not understanding cultural differences
,◉ High vs. Low Context Cultures Answer: High: nonverbal and
situational messages convey meaning
-Relationship more important than terms
-Emphasize developing interpersonal relationships
-(Asia, Europe, South America)
Low: words convey primary meaning
-Nonverbal messages are secondary
-The terms of the deal are more important than building a business
relationship
-Straightforward, concise, and efficient
-United States
◉ What are Hofstede's dimensions? Answer: Long-term vs. Short-term
orientation
-How far into the future are people thinking vs living in the now,
enjoying the present
Uncertainty avoidance
-To what extent are people okay with uncertainty vs prioritizing
security/safety
Masculinity vs. Femininity
, -To what extent does a country value assertiveness vs building
relationships, nurturing others
Individualism vs. Collectivism
-Expect individuals to achieve on their own vs with their group
Power distance
-People in society willing to accept hierarchies or distributions
◉ Definition of tariff and non-tariff trade barriers Answer: Tariff- a
direct tax on imported goods
Nontariff- barriers non tax 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 and also
intensify competition, and addressing that competition is a manager's job
◉ Characteristics of an attractive foreign business climate Answer: 1.
Growing markets
-purchasing power
-foreign competitors
2. Choosing an Office/Manufacturing Location
-Qualitative factors
