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.