Chapter 15 – Flashcards with Answers

question

Citicorp, Sony, and Ford are attempting to make a transition to which type of business organizational structure? domestic exporter multinational transnational franchiser
answer

transnational
question

Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information? Free Trade Agreement European Union Data Protection Directive United Nations Privacy Act European Transborder Data Flow Act
answer

European Union Data Protection Directive
question

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 multinational franchiser transnational
answer

transnational
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Accounting practices can vary significantly from country to country. True False
answer

True
question

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. systems development and operations occur in an integrated and coordinated fashion across all units. foreign units design the solutions and systems used at the domestic home base.
answer

each foreign unit designs its own unique solutions and systems.
question

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

duplicated
question

VPNs use the public Internet for communications. may not be able to support large numbers of remote users, due to the variable traffic on the Internet. provide many of the same services as private networks. all of these.
answer

all of these.
question

Which of the following is NOT one of the principle problems of international networks? network capacity poor quality of international service network standards regulatory constraints
answer

network standards
question

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

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

At the cultural level, differences among cultures produce differences in social expectations, politics, and legal rules. True False
answer

True
question

General cultural factors driving global business are 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 the global workforce, political stability, and a global knowledge base. the rise of a global workforce, global economies of scale, and global production and operations.
answer

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

In centralized 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. systems development and operations occur in an integrated and coordinated fashion across all units. systems development and operations occur totally at the domestic home base.
answer

systems development and operations occur totally at the domestic home base.
question

According to the chapter case, what was the chief challenge facing General Motors regarding its information systems? incompatible legacy systems resistance from managers resistance from rank-and-file employees lack of globalization
answer

incompatible legacy systems
question

Two of the management challenges in developing global systems are listed in your text as (1) managing the privacy concerns of different countries and (2) coordinating applications development. (1) creating a financial structure that will operate internationally and (2) managing the privacy concerns of different countries. (1) agreeing on common user requirements and (2) managing the privacy concerns of different countries. (1) coordinating software releases and (2) introducing changes in business processes.
answer

(1) coordinating software releases and (2) introducing changes in business processes.
question

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

True
question

Effective networked systems must have a powerful telecommunications backbone. culture of shared applications development. shared management culture that crosses cultural barriers. both culture of shared applications development and shared management culture that crosses cultural barriers powerful telecommunications backbone, culture of shared applications development, and shared management culture that crosses cultural barriers none of these
answer

powerful telecommunications backbone, culture of shared applications development, and shared management culture that crosses cultural barriers
question

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

True
question

The major dimensions of international systems architecture include each of the following EXCEPT the global environment. corporate global strategy. technology platform. transborder data flows.
answer

transborder data flows.
question

General challenges and obstacles to global business systems are typified by different technology standards, shortages of skilled consultants, and social expectations. brand-name expectations, language differences, and commercial regulations. different work hours, transborder data and privacy laws, and different technology standards. different communications standards, language differences, and network reliability.
answer

brand-name expectations, language differences, and commercial regulations.
question

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

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

In terms of global business strategy and structure, a domestic exporter will use a policy of some dispersed sales, with centralized production, accounting, human resources, and strategic management. centralized production and accounting with decentralized marketing and human resources. centralized production, accounting, marketing, and human resources. dispersed production and marketing, with centralized accounting, human resources and strategic management.
answer

some dispersed sales, with centralized production, accounting, human resources, and strategic management.
question

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

agency costs increase.
question

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

True
question

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

business process analysis.
question

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

develop separate systems within each country.
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Which of the following is NOT one of the main benefits to implementing global systems? superior management and coordination vast improvements in operation new economies of scale at production facilities reduced hardware costs
answer

reduced hardware costs
question

The European Union Data Protection Directive restricts the flow of any information to countries that do not meet strict European laws on personal information. True False
answer

True
question

European countries have very strict laws concerning transborder data flows and privacy. True False
answer

True
question

Before developing a corporate strategy and structure for globalization, a firm should determine the appropriate technology infrastructure. True False
answer

False
question

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

driver

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