Chapter 15 practice Q' s

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

Cultural expectations

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

Defining the global environment

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

EDI

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

decentralized

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

use of mobile telephones.

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

using raw power

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

???

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

Agency costs increase.

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

centralized

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

china

In decentralized 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. each foreign unit designs its own unique solutions and systems. systems development and operations occur in an integrated and coordinated fashion across all units. 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 of the following present challenges to developing global business systems except: production costs. shortages of skilled consultants. exchange rates. language differences. foreign accounting practices.

production costs

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

transborder data flows

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

International exporter

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 tends to fail because of a lack of concrete objectives. "Grand design" approaches typically fail to identify centers of excellence. This approach tends to fail because of an inability to focus resources. It is difficult to quantify and explain the benefits of information systems that are large. This approach may fail due to a lack of visibility.

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

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

duplicTED

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

financial

In centralized systems: A) development occurs at the home base and operations are handed over to autonomous units in foreign locations. B) each foreign unit designs its own unique solutions and systems. C) systems development and operations occur in an integrated and coordinated fashion across all units. D) systems development and operations occur totally at the domestic home base. E) systems development is a combined effort of domestic and international units.

D

Which of the following is not an important technology issue to consider when developing an international information system? Developing common data standards 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 Building sufficient connectivity

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? Encouraging local users to support global systems Introducing changes in business processes Agreeing on common user requirements Defining an acceptable test plan Coordinating applications development

Defining an acceptable test plan

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

Finding a provider of global software

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

Global social norms

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

Growth of international systems

The chapter outlines four steps in developing an effective global system solution. Which of the following is not one of these steps? Identify the core systems to coordinate centrally. Choose a developmental approach, incremental, evolutionary, or other. Make the benefits clear. Identify which local systems need to be replaced. Define the core business processes.

Identify which local systems need to be replaced.

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

Localized??

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

Many firms have attained transnational status

Which of the following countries has the highest percentage of its total population using the Internet? Somalia China United States Brazil Norway

Norway??

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

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? Develop and operate systems units at the international level first. 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. Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.

Organize value-adding activities along lines of comparative advantage.

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 General Data Protection Regulation (GDPR) provides additional privacy protection for European citizens and applies to all data produced by EU citizens. The GDPR applies to all companies collecting data on EU citizens even if they are not located in the EU. The European Data Directive of 1998 standardized privacy protection among EU nations. 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 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 business challenges you face in the global environment The global environment where your business will operate, and identify the business drivers for your firm and industry The different computing and communication standards in the world The state of world politics 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

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. The Internet provides a powerful foundation for providing connectivity among the dispersed units of global firms. Many global corporations use private networks to communicate sensitive data.

The public Internet guarantees a basic level of service.

Which of the following statements about accounting practices in different countries is not true? British firms recognize profits before a project is finished, once they are reasonably certain they will get the money. Dutch firms separate tax calculations from reports to shareholders. 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. British firms focus on showing shareholders how fast profits are growing.

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? Canada India China United States Brazil

United states

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

business process analysis.

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

centralized

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

comparative advantage.

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: cooptation. advocacy. implementation. cooperation. change management.

cooptation

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

core business processes.

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

cultural particularism.

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

Most companies pursuing a global strategy begin as: multinationals. domestic exporters. transnationals. conglomerate corporations. franchisers.

domestic exporters

Transnational centers of excellence do all of the following except: perform initial identification and specification of business processes. perform business and systems analysis. accomplish all design and testing. implement the system. define information requirements.

implement the system.

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

manufacturing

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 multinational franchising transnational conglomerate

multinational

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

networked

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

particularism.

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

patchwork international systems from the distant past.

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

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

the movement of information across international boundaries.

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. transnational franchiser multinational domestic importer domestic exporter

transnational