-
21) A force in the
environment to which businesses must respond and that influences the direction
of the business is called a business A)
driver. B) threat. C) process. D) matrix.
Answer: A
-
22) The major dimensions of
international systems architecture include each of the following except A) the
global environment. B) corporate global strategy. C) technology platform. D) transborder data flows.
Answer: D
-
23) General cultural factors
driving global business are A) global
communication and transportation technologies, a global knowledge base, and
global social norms. B) the development of global markets, political
stability, and a global workforce. C) the rise of the global workforce,
political stability, and a global knowledge base. D) the rise of a global
workforce, global economies of scale, and global production and operations.
Answer: A
-
24) Global coordination of
all of the major business functions permits the location of business activity
according to A) social norms and values.
B) comparative advantage. C) competitive threat. D) knowledge base.
Answer:B
-
25) Which of the following
is not one of the main organizational issues facing firms who are seeking to
globalize? A) choosing a global strategy B) organizing the global business
structure C) organizing the systems management
D) defining the global environment
Answer: D
-
26) Making judgments and
taking action on the basis of narrow or personal characteristics is referred to
as A) localization. B) cooptation. C)
particularism. D) prejudicial.
Answer: C
-
27) Which of the following restricts the flow
of personal information to countries that do not meet strict European
information laws on personal information? A) Free Trade Agreement B) European Union Data Protection Directive
C) United Nations Privacy Act D) European Transborder Data Flow Act
Answer: B
-
28) General challenges and
obstacles to global business systems are typified by A) different technology
standards, shortages of skilled consultants, and social expectations. B) brand-name expectations, language
differences, and commercial regulations. C) different work hours,
transborder data and privacy laws, and different technology standards. D)
different communications standards, language differences, and network
reliability.
Answer: B
-
29) Which of the following
is not a specific challenge to global business system? A) shortages of skilled
consultants B) language differences C)
different telecommunication standards D) different data transfer speeds
Answer:B
-
30) To avoid the cost and
uncertainty of moving information across national boundaries, most multinational
firms A) maintain a master database at their head offices. B) develop a master
system that meets the standards of all the countries concerned. C) use
microwave satellite transmission to move data. D) develop separate systems within each country.
Answer: D
-
31) German companies A) do not recognize the profit until the
project is completely finished and they have been paid. B) recognize
profits before the project is finished. C) recognize profits when the project
is initialized. D) do not recognize the profits until they have been formally
audited.
Answer: A
-
32) Most large companies
with overseas operations have inherited A) recently built technology platforms
for international systems. B)
batch-oriented reporting from independent foreign divisions to corporate
headquarters. C) transaction-oriented reporting based at the home office
for overseas business. D) global marketing systems developed domestically.
Answer: B
-
33) In terms of global
business strategy and structure, a domestic exporter will use a policy of A) some dispersed sales, with centralized
production, accounting, human resources, and strategic management. B)
centralized production and accounting with decentralized marketing and human
resources. C) centralized production, accounting, marketing, and human resources.
D) dispersed production and marketing, with centralized accounting, human
resources and strategic management.
Answer: A
-
34) Most companies pursuing
a global strategy begin as A) domestic
exporters. B) multinationals. C) franchisers. D) transnationals.
Answer: A
-
35) A company that controls
finances in the home country and decentralizes production, sales, and marketing
operations to other countries is using a ________ strategy. A) domestic
exporter B) franchising C) transnational
D) multinational
Answer: D
-
36) In terms of global
business strategy and structure, a multinational company will use a policy of
A) mixed sales and marketing, with centralized production, accounting, human
resources, and strategic management. B) centralized production, accounting, marketing,
human resources, with strategic management. C) dispersed production,
accounting, human resources, with centralized strategic management, and
marketing. D) dispersed production and
marketing, with centralized accounting and strategic management.
Answer: D
-
36) In terms of global
business strategy and structure, a multinational company will use a policy of
A) mixed sales and marketing, with centralized production, accounting, human
resources, and strategic management. B) centralized production, accounting, marketing,
human resources, with strategic management. C) dispersed production,
accounting, human resources, with centralized strategic management, and
marketing. D) dispersed production and
marketing, with centralized accounting and strategic management.
Answer: D
-
38) In terms of global
business strategy and structure, a franchise company will use a policy of A)
centralized production, accounting, marketing, human resources, with strategic
management. B) dispersed production, accounting, human resources, with
centralized strategic management, and marketing. C) dispersed production and
marketing, with centralized accounting, human resources and strategic
management. D) dispersed production,
marketing, and human resources, with centralized strategic management and
finance/accounting.
Answer: D
-
39) Which of the following
is not one of the primary types of system configuration discussed in the
chapter? A) decentralized B) duplicated C)
coordinated D) networked
Answer: C
-
40) 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. A) domestic exporter
B) multinational C) franchiser D)
transnational
Answer: D
-
41) Of the following, which
is not one of the three central principles recommended in this chapter for a
firm organizing itself for international business? A) Organize value-adding
activities along lines of comparative advantage. B) Establish a single office
responsible for international systems and a global CIO position. C) Disperse production and marketing to
regional centers and establish a single center for world headquarters and
strategic management. D) Develop and operate systems units at each level of
corporate activityregional, national, and international.
Answer: C
-
42) 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.
Answer: D
-
43) In duplicated 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) foreign units design the solutions and systems used at the
domestic home base.
Answer: A
-
44) In networked 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) foreign units
design the solutions and systems used at the domestic home base.
Answer: C
-
45) In decentralized 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) foreign units design the solutions and systems
used at the domestic home base.
Answer: B
-
46) Domestic exporters
typically have highly ________ systems. A) duplicated B) centralized C) networked D) decentralized
Answer: B
-
47) Multinational companies
tend to have ________ systems. A) duplicated B) centralized C) networked D) decentralized
Answer: D
-
48) Franchise companies have
typically had ________ systems. A)
duplicated B) centralized C) networked D) decentralized
Answer: A
-
49) Transnational companies
have tended to use a ________ systems configuration. A) duplicated B)
centralized C) networked D)
decentralized
Answer: C
-
50) The network systems
structure is the most visible in ________ services. A) production B) financial C) marketing D) software
design
Answer: B
-
51) Effective networked systems must have a A) powerful telecommunications backbone. B)
culture of shared applications development. C) shared management culture that
crosses cultural barriers. D) both B and C. E) A, B, and C. F) none of the above.
Answer: E
-
52) Two of the management
challenges in developing global systems are listed in your text as A) (1)
managing the privacy concerns of different countries and (2) coordinating
applications development. B) (1) creating a financial structure that will
operate internationally and (2) managing the privacy concerns of different
countries. C) (1) agreeing on common user requirements and (2) managing the
privacy concerns of different countries. D)
(1) coordinating software releases and (2) introducing changes in business
processes.
Answer: D
-
53) Which of the following
is not one of the principal management challenges in developing global systems?
A) encouraging local users to support global systems B) coordinating
applications development C) defining an
acceptable test plan D) agreeing on common user requirements
Answer: C
-
54) Logically related tasks
to produce specific business results best defines A) information systems. B) business processes. C) SOPs. D) core
competencies.
Answer: B
-
55) The way to identify core
business processes is to conduct a A) cost-benefit analysis. B) work-flow
analysis. C) business process analysis. D)
feasibility analysis.
Answer: C
-
56) As a firm moves from local
option systems to regional and global systems A) agency costs increase. B) coordination costs decrease. C)
transaction costs increase. D) both transaction and agency costs increase.
Answer: A
-
57) systems Which are worth
sharing on a transnational basis, from a cost and feasibility point of view? A) only systems that support functions that
are absolutely critical to the organization B) core systems and worthwhile
provincial systems C) core systems and any financial systems that can be easily
integrated with each other D) financial and accounting systems
Answer: A
-
58) Based on your reading of
the chapter, why should companies avoid creating an allencompassing, new global
system when moving towards global operations? A) These may fail due to lack of
visibility. B) It is difficult to quantify and explain the benefits of
information systems that are that large. C) "Grand design" approaches
typically fail to identify centers of excellence. D) Opposition is strengthened because of requirements for huge
resources.
Answer: D
-
59) The ability of global
systems to optimize the use of corporate funds over a much larger capital base
means that A) capital in a surplus region can be moved efficiently to expand
production of capital-starved regions. B) capital costs can be accounted or
spread over a larger base of constituents. C)
costs can be amortized over a larger customer base. D) value chains can be
synchronized more effectively.
Answer: C
-
60) Which of the following is not one of the
main benefits to implementing global systems? A) superior management and
coordination B) vast improvements in operation C) new economies of scale at
production facilities D) reduced
hardware costs
Answer: D
-
61) 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 A)
cooptation. B) change management. C) implementation. D) advocacy.
Answer: A
-
62) A global firm can
develop transnational centers of excellence as an effective technique to A)
ensure connectivity between regional systems. B) encourage user support of
global systems. C) effectively identify
global business processes. D) develop a merit-based hierarchy among
regional groups.
Answer: C
-
63) In relation to global
systems building, the Internet A) allows the seamless flow of information
through the enterprise. B) affords local groups stable broadband access. C) has reduced some networking problems.
D) all of the above.
Answer: C
-
64) A critical necessity for
ensuring the integration of local systems into a global system is A) adherence to data and technical
standards. B) use of standard hardware at the local level. C) use of
standard user software at the local level. D) all of the above.
Answer: A
-
65) VPNs A) use the public Internet for
communications. B) may not be able to support large numbers of remote users,
due to the variable traffic on the Internet. C) provide many of the same
services as private networks. D) all of
the above.
Answer: D
-
66) Which of the following is not one of the
principal problems of international networks? A) network capacity B) poor
quality of international service C)
network standards D) regulatory constraints
Answer: C
-
67) Sixty-eight percent of
the world's mobile phone subscriptions are in A) developing countries. B) Europe. C) the United States. D) the
United States and Canada.
Answer: A
-
68) Software localization is
the process of A) translating a user interface into a second language. B)
converting software programming to run on a different platform. C) converting software to operate in a
second language and with local conventions. D) modifying software so that
it can be adopted in other countries without engineering changes.
Answer: C
-
69) Which types of systems
are widely used by manufacturing and distribution firms to connect to suppliers
on a global basis? A) TPS systems B) EDI
systems C) CRM systems D) none of the above
Answer: B
-
70) The chapter outlines
three steps in developing an effective global system solution. Which of the
following is not one of these steps? A)
Identify outdated legacy systems to be replaced. B) Identify the core
systems to coordinate centrally. C) Choose a developmental approach:
incremental, evolutionary, or other. D) Define the core business processes.
Answer: A
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