Chapter 15

Domestic exporters typically have highly ________ systems.! duplicated Centralized networked decentralized autonomous

Centralized

In a multinational business strategy, the finance/accounting function is:! Centralized. mixed. performed by local divisions in different countries. dispersed. coordinated.

Centralized.

Final assembly of Apple's iPhone occurs in which of the following locations?! Germany United States South Korea Japan China

China

When developing a global system, bringing the opposition of local groups into the process of designing and implementing the solution without giving up control over the direction and nature of the change is called:! cooperation. Cooptation. change management. implementation. advocacy.

Cooptation.

Which of the following is not a specific challenge to global business systems?! Cultural expectations Shortages of skilled consultants Different data transfer speeds Different telecommunication standards Unreliable phone networks

Cultural expectations

Which of the following is the dominant pattern of governance used by transnational firms? Localized Federal structure Decentralized Centralized Duplicated

Federal structure

The network systems structure is the most visible in ________ services.! administrative software design marketing production Financial

Financial

Which of the following is not an important challenge when implementing a global information system solution?! Agreeing on common user requirements Finding a provider of global software Introducing changes in business processes Coordinating applications development Coordinating software releases

Finding a provider of global software

Which of the following statements about accounting practices in different countries is not true? U.S. accounting practices focus on demonstrating compliance with strict rules. Dutch firms separate tax calculations from reports to shareholders. British firms recognize profits before a project is finished, once they are reasonably certain they will get the money. British firms focus on showing shareholders how fast profits are growing. German companies generally do not recognize a profit from a venture until the project is completely finished and they have been paid.

U.S. accounting practices focus on demonstrating compliance with strict rules.

Which of the following has the second-highest percentage of Internet users based on its total population in the world? United States India Brazil China Canada

United States

Most large companies with overseas operations have inherited:! enterprise systems developed by local firms. recently built technology platforms for international systems. transaction-oriented reporting based at the home office for overseas business. patchwork international systems from the distant past. global marketing systems developed domestically.

patchwork international systems from the distant past.

All of the following present challenges to developing global business systems except:! language differences. production costs. exchange rates. foreign accounting practices. shortages of skilled consultants.

production costs.

The EU General Data Protection Regulation (GDPR):! allows European countries to adopt their own privacy legislation. provides additional privacy protection for European citizens and applies to all data produced by EU citizens or processed in Europe. provides additional privacy protections for Americans doing business in Europe. prevents the transfer of private personal information among EU nations. requires that European companies meet U.S. data privacy standards.

provides additional privacy protection for European citizens and applies to all data produced by EU citizens or processed in Europe.

In networked systems:! foreign units design the solutions and systems used at the domestic home base. development occurs at the home base and operations are handed over to autonomous units in foreign locations. each foreign unit designs its own unique solutions and systems. development occurs at the home base but operations are handed over to autonomous units in foreign locations. systems development and operations occur in an integrated and coordinated fashion across all units.

systems development and operations occur in an integrated and coordinated fashion across all units.

Transborder data flow refers to:! the movement of information across international boundaries. the business of moving information from one country to another. the flow of information in international systems. the business process of coordinating information from many different countries. the ways in which a country's laws change the flow of data from one country to another.

the movement of information across international boundaries.

The major dimensions of international systems architecture include each of the following except: corporate global strategy. technology platform. the global environment. management and business processes. transborder data flows.

transborder data flows.

Which of the following occurs as a firm moves from local option systems to regional and global systems?! All costs increase. Agency costs increase. Both transaction and agency costs increase. Coordination costs decrease. Transaction costs increase.

Agency costs increase.

Which of the following is the best definition of international information systems?! Systems that talk to one another using the global Internet Basic information systems required by organizations to coordinate worldwide trade and other activities Business processes that span the globe Systems used by international businesses Systems that are developed by global firms

Basic information systems required by organizations to coordinate worldwide trade and other activities

Multinational companies tend to dominantly have ________ systems.! duplicated centralized networked Decentralized autonomous

Decentralized

Which of the following is not an important technology issue to consider when developing an international information system?! Developing common data standards Building sufficient connectivity Standardizing the global computing platform Deciding how mobile computing will fit into your international system Finding specific software applications that are user friendly and enhance productivity

Deciding how mobile computing will fit into your international system

Which of the following is not one of the principal management challenges in developing global systems?! Coordinating applications development Defining an acceptable test plan Encouraging local users to support global systems Agreeing on common user requirements Introducing changes in business processes

Defining an acceptable test plan

Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?! Organizing the business Defining the global environment Choosing a global strategy Organizing the systems management Organizing the global business structure

Defining the global environment

Which of the following is not one of the challenges posed by international networks, including the Internet?! Differences in Internet protocols Costs and tariffs Security Network management Quality of service

Differences in Internet protocols

Franchise companies have typically had ________ systems.! Duplicated centralized networked decentralized autonomous

Duplicated

Which types of systems are widely used by manufacturing and distribution firms to connect to suppliers on a global basis? Enterprise systems MIS CRM TPS EDI

EDI

Which of the following is not a business driver of global business?! Global communication and transportation technologies Political stability Development of global culture Emergence of global social norms Growth of international systems

Growth of international systems

Which of the following is not one of the primary types of firm strategy discussed in the chapter? International exporter Multinational Transnational Franchiser Domestic exporter

International exporter

Which of the following industries is most affected by globalization?! Entertainment Telecommunications Law Manufacturing Transportation

Manufacturing

Which of the following statements about transnational firms is not true?! Transnational firms have no single headquarters. Many firms have attained transnational status. Transnational firms are stateless. Transnational firms have many regional headquarters and perhaps a world headquarters. Transnational firms view the entire globe as their management frame of reference.

Many firms have attained transnational status.

A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ________ strategy. domestic exporter conglomerate franchising Multinational transnational

Multinational

Which of the following is not one of the principal problems of international networks?! Network capacity Regulatory constraints Installation delays Poor quality of international service Network standards

Network standards

Which of the following is an emerging pattern of system configuration for multinational companies?! Duplicated Centralized Networked Decentralized Autonomous

Networked

Which of the following statements about networked systems is not true? Networked systems require a powerful telecommunications backbone. Networked systems require a shared management culture that crosses cultural barriers. Networked systems are an emerging trend for multinational firms. Networked systems require a culture of shared applications development. Networked systems are those in which there is a solid, singular global environment for developing and operating systems.

Networked systems are an emerging trend for multinational firms.

Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view?! Systems that support decentralized units Only some core systems that support functions that are absolutely critical to the organization Financial and accounting systems Core systems and worthwhile provincial systems Core systems and any financial systems that can be easily integrated with each other

Only some core systems that support functions that are absolutely critical to the organization

Of the following, which is one of the central principles recommended in this chapter for a firm organizing itself for international business?! Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management. Centralize production, but decentralize marketing and sales to be close to the customer. Organize value-adding activities along lines of comparative advantage. Establish multiple offices for international systems and a global CIO position. Develop and operate systems units at the international level first.

Organize value-adding activities along lines of comparative advantage.

Making judgments and taking action on the basis of narrow or personal characteristics is referred to as:! Particularism. localization. cooptation. globalization. prejudice.

Particularism.

Which of the following is not one of the main benefits to implementing global systems? Vast improvements in operation New economies of scale at production facilities Optimization of the use of corporate funds Reduced hardware and software costs Superior management and coordination

Reduced hardware and software costs

Which of the following methods of encouraging local users to support global systems should be avoided as much as possible?! Requiring local units to agree on a short list of transnational systems Using raw power Developing transnational centers of excellence Involving users in the creation of the design without giving up control over the development of the project to parochial interests Permitting each country unit the opportunity to develop a transnational application first in its home territory and then throughout the world

Requiring local units to agree on a short list of transnational systems Using raw power

Which of the following is not a general cultural factor driving global business?! Political stability Global communication and transportation technologies Rise of shared values Global knowledge base Global social norms

Rise of shared values

Which of the following statements about transborder data flow is not true?! The GDPR applies only to citizens of the EU and does not apply to non-citizen residents. The European Data Directive of 1998 allowed for the transfer of personal data to systems located in the United States and other nations where these systems met European privacy standards. The GDPR applies to all companies collecting data on EU citizens even if they are not located in the EU. The General Data Protection Regulation (GDPR) provides additional privacy protection for European citizens and applies to all data produced by EU citizens. The European Data Directive of 1998 standardized privacy protection among EU nations.

The GDPR applies only to citizens of the EU and does not apply to non-citizen residents.

What is the first thing you should consider when thinking about building an international information system?! The different computing and communication standards in the world The state of world politics The business challenges you face in the global environment New technologies that will help you achieve your goals The global environment where your business will operate, and identify the business drivers for your firm and industry

The global environment where your business will operate, and identify the business drivers for your firm and industry

Which of the following statements about connectivity in relation to global systems is not true?! Not all countries support basic Internet service. Few global corporations trust the security of the Internet. The public Internet guarantees a basic level of service. Many global corporations use private networks to communicate sensitive data. The Internet provides a powerful foundation for providing connectivity among the dispersed units of global firms.

The public Internet guarantees a basic level of service.

Based on your reading of the chapter, why should companies avoid creating an all-encompassing, new global system when moving towards global operations?? This approach may fail due to a lack of visibility. This approach tends to fail because of a lack of concrete objectives. It is difficult to quantify and explain the benefits of information systems that are large. This approach tends to fail because of an inability to focus resources. "Grand design" approaches typically fail to identify centers of excellence.

This approach tends to fail because of an inability to focus resources.

In terms of global business strategy, the governance of ________ firms has been likened to a federal structure—strong central management core of decision making, but considerable dispersal of power and financial resources.! domestic exporter franchiser Transnational multinational domestic importer

Transnational

In terms of global business strategy and structure, a domestic exporter strategy:! a. disperses production and marketing, with centralized accounting, human resources and strategic management. b. centralizes production, accounting, human resources, and strategic management, and uses a mixed model of sales and marketing. C. concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. D. concentrates production and marketing in each country, and decentralizes accounting and human resources. centralizes production, accounting, marketing, and human resources.

b. centralizes production, accounting, human resources, and strategic management, and uses a mixed model of sales and marketing.

The way to identify core business processes is to conduct a:! cost-benefit analysis. systems analysis. feasibility analysis. business process analysis. work-flow analysis

business process analysis.

New levels of global coordination of all of the major business functions permit the location of business activity according to:! competitive threat. labor costs. knowledge base. social norms and values. comparative advantage.

comparative advantage.

In terms of global business strategy and structure, a franchise company will use a policy of:! decentralized production, accounting, human resources, with a decentralized management. centralized production, accounting, marketing, human resources, with strategic management. dispersed production and marketing, with centralized accounting, human resources and strategic management. dispersed production, accounting, human resources, with centralized strategic management, and marketing. coordinated production, marketing, and human resources, with centralized strategic management and finance/accounting.

coordinated production, marketing, and human resources, with centralized strategic management and finance/accounting.

In order to define centers of excellence in a global firm, you first need to identify:! international best practices. core competencies. SOPs. core business processes. functional areas.

core business processes.

Consumers who only want to purchase products made in their own country are an example of:! universal global attitudes. different business standards. cultural particularism. political culture. different laws in different countries.

cultural particularism.

Consumers who only want to purchase products made in their own country are an example of:? universal global attitudes. different business standards. cultural particularism. political culture. different laws in different countries.

cultural particularism.

In duplicated systems:! a. each foreign unit designs its own unique solutions and systems. b. development occurs at the home base and operations are handed over to autonomous units in foreign locations. c. systems development and operations occur in an integrated and coordinated fashion across all units. d. foreign units design the solutions and systems used at the domestic home base. e. systems development is a combined effort of domestic and international units which are then duplicated across the world.

development occurs at the home base and operations are handed over to autonomous units in foreign locations.

In terms of global business strategy and structure, a multinational company will use a policy of:! mixed sales and marketing, with centralized production, accounting, human resources, and strategic management. dispersed production and marketing, with centralized accounting and strategic management. making local units that are clones of the mother country units. dispersed production, accounting, human resources, with centralized strategic management, and marketing. centralized production, accounting, marketing, human resources, with strategic management.

dispersed production and marketing, with centralized accounting and strategic management.

In decentralized systems: ! development occurs at the home base and operations are handed over to autonomous units in foreign locations. each foreign unit designs its own unique solutions and systems. all systems are designed in domestic headquarters and then distributed to foreign units. foreign units design the solutions and systems used at the domestic home base. systems development and operations occur in an integrated and coordinated fashion across all units.

each foreign unit designs its own unique solutions and systems.

In developing countries, use of the Internet is limited by all of the following except:! use of mobile telephones. high cost of Internet access. poor bandwidth capacity. political disruptions. unreliable power grids.

use of mobile telephones.