Deck 14: International Dimension 1 - the Global Economy

Question 1

Because Getty Images licenses photos in digital format,its variable cost of production is essentially zero.

Answer 1

True

Question 2

How does the global economy change competitive strategy?

Answer 2

Today's global economy changes competitive strategies analysis in two major ways.First,the sheer size and complexity of the global economy means that any organization that chooses a strategy to compete industry-wide is taking a very big bite! Competing in many different countries,with products localized to the language and culture of those countries,is an enormous and expensive task.The second major way today's world economy changes competitive strategies is that its size,combined with the Internet,enables unprecedented product differentiation.

Question 3

Of the five components to an information system,the hardware component is the most impacted by internationalization.

Answer 3

False

Question 4

How many people according to Thomas Friedman's estimation,have been added to the world economy from 1991 until now?

A)3 million
B)1 million
C)3 billion
D)100,000

Question 5

The global economy has intensified rivalry by increasing product and vendor choices and by accelerating the flow of information about price,product,availability,and service.

Question 6

Describe the three licensing models used by Getty Images.

Question 7

Plentiful,cheap telecommunications enabled people worldwide to participate in the global economy.

Question 8

In this licensing model used by Getty Images,customers pay a fee based on the file size of the image and can use the image any way they want and as many times as they want.However,under this model,customers have no exclusivity or ability to prevent a competitor from using the same image at the same time.

A)subscription
B)royalty-free
C)rights managed
D)duty free

Question 9

The sheer size and complexity of the global economy means that any organization that chooses a strategy to compete industry-wide is ________.

A)taking on an enormous and expensive task
B)embarking on an impossible task
C)bound to succeed
D)will be an industry leader

Question 10

The growth in the world economy has major impacts on all activities in the value chain model.

Question 11

Royalty-free is the Getty licensing model by which customers contract to use as many images as they want.

Question 12

Information systems procedures need to reflect local cultural values and norms..

Question 13

The changes brought about by the emergence of a global economy have been so dramatic that the structure of seemingly every industry has changed.

Question 14

The growth in the world economy has major impacts on ________ activities in the value chain model.

A)some
B)none of the
C)two
D)all

Question 15

Thomas Friedman estimates that some 30 billion people have been added to the world economy since 1991.

Question 16

Why is hardware the only component of an information system that is not affected by the global economy?

Question 17

Today's global economy changes competitive strategies analysis in two major ways.Which of the following is one such way?

A)the amount of dark fiber
B)simplicity of the flat global economy
C)unprecedented product differentiation
D)unprecedented ease of competing industry-wide

Question 18

Because Getty Images licenses photos in digital format,its overhead costs of setting up and operating
the e-commerce site is essentially zero.

Question 19

Which of the five components of an information system is least impacted by internationalization?

A)hardware
B)software
C)data
D)procedures