ELITE COMPREHENSIVE
MANAGEMENT AND LEADERSHIP EXAMINATION
Comprehensive Assessment in Organizational
Management, Leadership, Delegation & Decision-
Making
SPRING SEMESTER EXAMINATION MAY 2O26
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
Pros:
-productivity grows
-living standards increase
-inflation is less likely (cheap)
1|Page
,-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
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|Page
,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
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
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, -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
-individualism vs. collectivism
-power distance
long-term vs. short-term orientation
addresses whether cultures are oriented to the present and seek immediate
gratification or to the future and defer gratification
uncertainty avoidance
the degree to which people in a country are uncomfortable with unstructured,
ambiguous, unpredictable situations
masculinity vs. femininity
the difference between highly assertive and highly nurturing cultures
4|Page
MANAGEMENT AND LEADERSHIP EXAMINATION
Comprehensive Assessment in Organizational
Management, Leadership, Delegation & Decision-
Making
SPRING SEMESTER EXAMINATION MAY 2O26
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
Pros:
-productivity grows
-living standards increase
-inflation is less likely (cheap)
1|Page
,-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
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|Page
,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
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
3|Page
, -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
-individualism vs. collectivism
-power distance
long-term vs. short-term orientation
addresses whether cultures are oriented to the present and seek immediate
gratification or to the future and defer gratification
uncertainty avoidance
the degree to which people in a country are uncomfortable with unstructured,
ambiguous, unpredictable situations
masculinity vs. femininity
the difference between highly assertive and highly nurturing cultures
4|Page
