| Online Exam 8 |
| Question 1 |
A force in the environment to which businesses must respond and that influences the direction of the business is called a business:
Question options:
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| driver. |
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| threat. |
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| process. |
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| matrix. |
| Question 2 | |
International information systems refer to:
Question options:
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| systems that talk to one another using the global Internet. |
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| systems used by international businesses. |
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| business processes that span the globe. |
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| the basic information systems required by organizations to coordinate worldwide trade and other activities. |
| Question 3 | |
German companies:
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| do not recognize the profit until the project is completely finished and they have been paid. |
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| recognize profits before the project is finished. |
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| recognize profits when the project is initialized. |
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| do not recognize the profits until they have been formally audited. |
| Question 4 | |
All of the following present challenges to developing global business systems EXCEPT:
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| foreign accounting practices. |
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| production costs. |
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| language differences. |
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| exchange rates. |
| Question 5 | |
Which of the following is NOT one of the principal management challenges in developing global systems?
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| Encouraging local users to support global systems |
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| Coordinating applications development |
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| Defining an acceptable test plan |
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| Agreeing on common user requirements |
| Question 6 | |
In relation to global systems building, the Internet:
Question options:
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| allows the seamless flow of information through the enterprise. |
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| affords local groups stable broadband access. |
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| has reduced networking problems. |
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| reduced the need for skilled IT employees. |
| Question 7 | |
In decentralized systems:
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| development occurs at the home base and operations are handed over to autonomous units in foreign locations. |
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| each foreign unit designs its own unique solutions and systems. |
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| systems development and operations occur in an integrated and coordinated fashion across all units. |
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| foreign units design the solutions and systems used at the domestic home base. |
| Question 8 | |
As a firm moves from local option systems to regional and global systems:
Question options:
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| agency costs increase. |
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| coordination costs decrease. |
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| transaction costs increase. |
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| both transaction and agency costs increase. |
| Question 9 | |
What is the first thing you should consider when thinking about building an international information system?
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| The state of world politics |
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| Look for new technologies that will help you achieve your goals |
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| Consider the global environment where your business will operate, and identify the business drivers for your firm and industry |
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| The business challenges you face in the global environment |
| Question 10 | |
A critical necessity for ensuring the integration of local systems into a global system is:
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| adherence to data and technical standards. |
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| use of standard hardware at the local level. |
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| use of standard user software at the local level. |
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| using standard computers throughout the system. |
| Question 11 | |
The network systems structure is the most visible in __________ services.
Question options:
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| production |
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| financial |
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| marketing |
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| software design |
| Question 12 | |
Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view?
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| Only systems that support functions that are absolutely critical to the organization |
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| Core systems and worthwhile provincial systems |
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| Core systems and any financial systems that can be easily integrated with each other |
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| Financial and accounting systems |
| Question 13 | |
Which of the following is NOT a business driver of global business?
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| Global communication and transportation technologies |
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| Development of global culture |
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| Emergence of global social norms |
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| Growth of international systems |
| Question 14 | |
Of the following, which is one of the central principles recommended in this chapter for a firm organizing itself for international business?
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| Organize value-adding activities along lines of comparative advantage. |
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| Establish multiple offices for international systems and a global CIO position. |
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| Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management. |
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| Develop and operate systems units at the international level first. |
| Question 15 | |
Which of the following is NOT an important factor when implementing a global information system solution?
Question options:
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| Agreeing on common user requirements |
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| Understanding if your computer system can operate in a global environment |
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| Introducing changes in business processes |
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| Coordinating applications development |
| Question 16 | |
Which of the following is NOT one of the main benefits to implementing global systems?
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| Superior management and coordination |
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| Vast improvements in operation |
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| New economies of scale at production facilities |
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| Reduced hardware costs |
| Question 17 | |
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.
Question options:
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| transnational |
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| multinational |
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| franchiser |
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| domestic exporter |
| Question 18 | |
In a multinational business strategy, the __________ business function is decentralized, dispersed to foreign units.
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| finance/accounting |
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| production |
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| human resources |
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| strategic management |
| Question 19 | |
Most large companies with overseas operations have inherited:
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| recently built technology platforms for international systems. |
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| batch-oriented reporting from independent foreign divisions to corporate headquarters. |
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| transaction-oriented reporting based at the home office for overseas business. |
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| global marketing systems developed domestically. |
| Question 20 | |
Global coordination of all of the major business functions permits the location of business activity according to:
Question options:
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| comparative advantage. |
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| social norms and values. |
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| competitive threat. |
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| knowledge base. |