A force in the environment to which businesses must respond and that

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:

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Question 2

International information systems refer to:

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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:

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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:

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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?

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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:

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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:

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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:

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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?

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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:

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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.

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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

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?

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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?

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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?

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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.

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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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human resources

strategic management

Question 19

Most large companies with overseas operations have inherited:

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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:

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comparative advantage.

social norms and values.

competitive threat.

knowledge base.