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:
| driver. |
| threat. |
| process. |
| matrix. |
Question 2 |
International information systems refer to:
Question options:
| systems that talk to one another using the global Internet. |
| systems used by international businesses. |
| business processes that span the globe. |
| the basic information systems required by organizations to coordinate worldwide trade and other activities. |
Question 3 |
German companies:
Question options:
| do not recognize the profit until the project is completely finished and they have been paid. |
| recognize profits before the project is finished. |
| recognize profits when the project is initialized. |
| 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:
Question options:
| foreign accounting practices. |
| production costs. |
| language differences. |
| exchange rates. |
Question 5 |
Which of the following is NOT one of the principal management challenges in developing global systems?
Question options:
| Encouraging local users to support global systems |
| Coordinating applications development |
| Defining an acceptable test plan |
| Agreeing on common user requirements |
Question 6 |
In relation to global systems building, the Internet:
Question options:
| allows the seamless flow of information through the enterprise. |
| affords local groups stable broadband access. |
| has reduced networking problems. |
| reduced the need for skilled IT employees. |
Question 7 |
In decentralized systems:
Question options:
| 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. |
Question 8 |
As a firm moves from local option systems to regional and global systems:
Question options:
| agency costs increase. |
| coordination costs decrease. |
| transaction costs increase. |
| both transaction and agency costs increase. |
Question 9 |
What is the first thing you should consider when thinking about building an international information system?
Question options:
| The state of world politics |
| Look for new technologies that will help you achieve your goals |
| Consider the global environment where your business will operate, and identify the business drivers for your firm and industry |
| 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:
Question options:
| adherence to data and technical standards. |
| use of standard hardware at the local level. |
| use of standard user software at the local level. |
| using standard computers throughout the system. |
Question 11 |
The network systems structure is the most visible in __________ services.
Question options:
| production |
| financial |
| marketing |
| software design |
Question 12 |
Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view?
Question options:
| Only systems that support functions that are absolutely critical to the organization |
| Core systems and worthwhile provincial systems |
| Core systems and any financial systems that can be easily integrated with each other |
| Financial and accounting systems |
Question 13 |
Which of the following is NOT a business driver of global business?
Question options:
| Global communication and transportation technologies |
| Development of global culture |
| Emergence of global social norms |
| 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?
Question options:
| 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. |
| 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:
| Agreeing on common user requirements |
| Understanding if your computer system can operate in a global environment |
| Introducing changes in business processes |
| Coordinating applications development |
Question 16 |
Which of the following is NOT one of the main benefits to implementing global systems?
Question options:
| Superior management and coordination |
| Vast improvements in operation |
| New economies of scale at production facilities |
| 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:
| transnational |
| multinational |
| franchiser |
| domestic exporter |
Question 18 |
In a multinational business strategy, the __________ business function is decentralized, dispersed to foreign units.
Question options:
| finance/accounting |
| production |
| human resources |
| strategic management |
Question 19 |
Most large companies with overseas operations have inherited:
Question options:
| recently built technology platforms for international systems. |
| batch-oriented reporting from independent foreign divisions to corporate headquarters. |
| transaction-oriented reporting based at the home office for overseas business. |
| 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:
| comparative advantage. |
| social norms and values. |
| competitive threat. |
| knowledge base. |
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