Question 1

German companies  do not recognize the profits until they have been formally audited. do not recognize the profit until the project is completely finished and they have been paid. do not have profits, but instead report dividends. recognize profits when the project is initialized. recognize profits before the project is finished.

Accepted Answer

do not recognize the profit until the project is completely finished and they have been paid.

Question 2

VPNs  are expensive to develop and maintain. use the public Internet for communications. provide all the same services as private networks. provide guaranteed levels of service. can be used only for data but not voice traffic.

Accepted Answer

are expensive to develop and maintain.

Question 3

To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms  use microwave satellite transmission to move data. develop separate systems within each country. maintain a master database at their head offices. develop a master system that meets the standards of all the countries concerned. use a cloud-based service.

Accepted Answer

develop separate systems within each country.

Question 4

Transnational companies have tended to use a(n) ________ systems  configuration.  duplicated autonomous centralized networked decentralized

Accepted Answer

networked

Question 5

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

Accepted Answer

transnational

Question 6

In terms of global business strategy and structure, a multinational company will use a policy of  centralized production, accounting, marketing, human resources, with strategic management. 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.

Accepted Answer

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

Question 7

Which of the following is not one of the primary types of firm strategy discussed in the chapter?  transnational domestic exporter multinational franchiser international exporter

Accepted Answer

international exporter

Question 8

In cooptation  the systems used on the company\'s home country are modified to communicate with the systems of foreign units so that each unit can retain their unique business processes. the systems of specific foreign units are chosen to duplicate for use by other units. the new global system replaces all unit systems, including systems in the home territory. opponents to a planned global system are brought into the process of designing and implementing the solution. all the relevant parties are asked to participate in the design of global systems.

Accepted Answer

opponents to a planned global system are brought into the process of designing and implementing the solution.

Question 9

In a multinational strategy, financial management is centralized while production and sales are decentralized. True False

Accepted Answer

True

Question 10

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

Accepted Answer

centralized

Question 11

With the growth of the Internet and reliable phone networks, skilled consultants are readily available to companies operating in global markets. True False

Accepted Answer

False

Question 12

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. advocacy. implementation.

Accepted Answer

cooptation.

Question 13

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

Accepted Answer

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

Question 14

As a firm moves from local option systems to regional and global systems  coordination costs decrease. both transaction and agency costs increase. all costs increase. transaction costs increase. agency costs increase.

Accepted Answer

agency costs increase.

Question 15

A powerful strategic advantage for a globalized firm is lowered cost factors in production. True False

Accepted Answer

True

Question 16

Micromarketing describes the direct marketing of products to individuals rather than groups. True False

Accepted Answer

False

Question 17

In international companies, English has become a kind of standard business language. True False

Accepted Answer

True

Question 18

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

Accepted Answer

Opposition is strengthened because of requirements for huge resources.

Question 19

To comply with European privacy laws, many multinational firms have developed information systems within each European country. True False

Accepted Answer

True

Question 20

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

Accepted Answer

use of mobile telephones.

Question 21

While private networks have guaranteed service levels and better security than the Internet, the Internet is the primary foundation for global corporate networks when lower security and service levels are acceptable. True False

Accepted Answer

True

Question 22

International information systems refer to  the basic information systems required by organizations to coordinate worldwide trade and other activities. systems used by international businesses. systems that are developed by global firms. systems that talk to one another using the global Internet. business processes that span the globe.

Accepted Answer

the basic information systems required by organizations to coordinate worldwide trade and other activities.

Question 23

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

Accepted Answer

EDI systems

Question 24

In a franchiser business strategy, each foreign unit designs its own solutions and systems. True False

Accepted Answer

False

Question 25

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

Accepted Answer

decentralized

Question 26

Global business drivers can be divided into two groups: general cultural factors and specific business factors. True False

Accepted Answer

True

Question 27

Which of the following is not one of the main benefits to implementing global systems? vast improvements in operation optimize use of corporate funds reduced hardware costs new economies of scale at production facilities superior management and coordination

Accepted Answer

reduced hardware costs

Question 28

Which of the following is not one of the principal problems of international networks? installation delays network capacity regulatory constraints poor quality of international service network standards

Accepted Answer

network standards

Question 29

Global coordination of all of the major business functions permits the location of business activity according to  labor costs. knowledge base. competitive threat. comparative advantage. social norms and values.

Accepted Answer

comparative advantage.

Question 30

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

Accepted Answer

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

Question 31

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

Accepted Answer

domestic exporters.

Question 32

Software localization is important for global systems because  only some users need to know English, while others can use their local languages. all users need to be trained in English to use global systems. productivity of employees rises when systems use their local languages. most managers around the world use English as their business language. computer programs are almost always written in English.

Accepted Answer

productivity of employees rises when systems use their local languages.

Question 33

Effective networked systems must have a  shared management culture that crosses cultural barriers.  culture of shared applications development.  powerful telecommunications backbone.  both B and C.  A, B, and C.

Accepted Answer

A, B, and C.

Question 34

A critical necessity for ensuring the integration of local systems into a global system is  use of standard user software at the local level. use of standard hardware at the local level. adherence to data and technical standards. using localized software. using standard computers throughout the system.

Accepted Answer

adherence to data and technical standards.

Question 35

Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services. True False

Accepted Answer

False

Question 36

A force in the environment to which businesses must respond and that influences the direction of the business is called a business driver. process. matrix. strategy. threat.

Accepted Answer

driver.

Question 37

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

Accepted Answer

production costs.

Question 38

The collapse of the Eastern block has retarded the growth of a world culture. True False

Accepted Answer

False

Question 39

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

Accepted Answer

multinational

Question 40

A global firm can develop transnational centers of excellence as an effective technique to  encourage user support of global systems. effectively identify global business processes. ensure connectivity between regional systems. develop a merit-based hierarchy among regional groups. identify who opposes the proposed global changes.

Accepted Answer

effectively identify global business processes.

Question 41

The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets. True False

Accepted Answer

True

Question 42

The growth of powerful communications technologies and the emergence of world cultures have failed to create a foundation for global markets. True False

Accepted Answer

False

Question 43

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

Accepted Answer

deciding how mobile computing will fit into your international system

Question 44

In terms of global business strategy and structure, a multinational strategy  concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.  centralizes production, accounting, marketing, and human resources. concentrates production and marketing in each country, and decentralizes accounting and human resources.  centralizes production and accounting and decentralizes marketing and human resources.  disperses production and marketing, with centralized accounting, human resources and strategic management.

Accepted Answer

concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.

Question 45

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

Accepted Answer

transborder data flows.

Question 46

Which of the following is not one of the principal management challenges in developing global systems?  agreeing on common user requirements coordinating applications development defining an acceptable test plan introducing changes in business processes encouraging local users to support global systems

Accepted Answer

defining an acceptable test plan

Question 47

In relation to global systems building, the Internet  affords local groups stable broadband access. reduced the need for skilled IT employees. has increased the need for private networks. has reduced networking problems. allows the seamless flow of information through the enterprise.

Accepted Answer

has reduced networking problems.

Question 48

Global markets, production, and administration create the conditions for: domestic exporter kinds of businesses global systems global economies of scale a truly global labor force localized software

Accepted Answer

global economies of scale

Question 49

There are two primary global organization types: management centralized in the home country or distributed to foreign centers. True False

Accepted Answer

False

Question 50

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

Accepted Answer

core business processes.

Question 51

Which of the following is not a specific challenge to global business systems?  unreliable phone networks cultural expectations shortages of skilled consultants different telecommunication standards different data transfer speeds

Accepted Answer

cultural expectations

Question 52

Most large companies with overseas operations have inherited  batch-oriented reporting from independent foreign divisions to corporate headquarters. transaction-oriented reporting based at the home office for overseas business. enterprise systems developed by local firms. global marketing systems developed domestically. recently built technology platforms for international systems.

Accepted Answer

batch-oriented reporting from independent foreign divisions to corporate headquarters.

Question 53

From your reading of the chapter case, which of the following best describes the challenge Unilever was facing as a global company?  lack of buy-in for global systems by foreign units too many systems in too many data centers, making it difficult to process transactions in a timely fashion inadequate information for managerial decision making managing a global supply chain poor governance of global systems

Accepted Answer

too many systems in too many data centers, making it difficult to process transactions in a timely fashion

Question 54

In decentralized 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. all systems are designed in domestic headquarters and then distributed to foreign units. each foreign unit designs its own unique solutions and systems. foreign units design the solutions and systems used at the domestic home base.

Accepted Answer

each foreign unit designs its own unique solutions and systems.

Question 55

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

Accepted Answer

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

Question 56

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

Accepted Answer

particularism.

Question 57

General cultural factors driving global business are  the rise of the global workforce, political stability, and a global knowledge base. global communication and transportation technologies, a global knowledge base, and global social norms. the development of global markets, political stability, and a global workforce. the rise of a global workforce, global economies of scale, and global production and operations. growth of a global village spurred by television, the Internet, and computerization.

Accepted Answer

global communication and transportation technologies, a global knowledge base, and global social norms.

Question 58

In duplicated systems  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. systems development is a combined effort of domestic and international units which are then duplicated across the world. foreign units design the solutions and systems used at the domestic home base.

Accepted Answer

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

Question 59

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

Accepted Answer

duplicated

Question 60

Software localization is the process of  converting software programming to run on a different platform. modifying software so executives can understand its command language. modifying software so that it can be adopted in other countries without engineering changes. converting software to operate in a second language and with local conventions. translating a user interface into a second language.

Accepted Answer

converting software to operate in a second language and with local conventions.

Question 61

One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards. True False

Accepted Answer

True

Question 62

Which of the following is not an important factor when implementing a global information system solution?  introducing changes in business processes coordinating applications development understanding if your computer system can operate in a global environment agreeing on common user requirements coordinating software releases

Accepted Answer

understanding if your computer system can operate in a global environment

Question 63

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

Accepted Answer

only systems that support functions that are absolutely critical to the organization

Question 64

In a multinational business strategy, the ________ business function is decentralized, dispersed to foreign units.  production sales/marketing strategic management human resources finance/accounting

Accepted Answer

production

Chapter 15 MIS

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