Question 1

To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms
A) maintain a master database at their head offices.
B) develop a master system that meets the standards of all the countries concerned.
C) use microwave satellite transmission to move data.
D) develop separate systems within each country.

Accepted Answer

Developing separate systems within each country allows multinational firms to comply with local regulations and standards, reducing the complexity and cost associated with transferring data across borders.

Question 2

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.
A) domestic exporter
B) multinational
C) franchiser
D) transnational

Accepted Answer

The governance of transnational firms has been compared to a federal structure as they have a strong central management core for decision-making but also a significant dispersal of financial resources and power, similar to how power and resources are dispersed in a federal system. Domestic exporter companies only export goods to other countries and do not have a global presence, franchisers grant franchises to other parties in exchange for fees or royalties but do not manage the franchises directly, and multinational companies operate in multiple countries but may still have a centralized management structure.

Question 3

In terms of global business strategy and structure, a multinational company will use a policy of
A) mixed sales and marketing, with centralized production, accounting, human resources, and strategic management.
B) centralized production, accounting, marketing, human resources, with strategic management.
C) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
D) dispersed production and marketing, with centralized accounting and strategic management.

Accepted Answer

A multinational company often disperses production and marketing to adapt to local markets and reduce costs, while centralizing accounting and strategic management to maintain control and consistency across the organization.

Question 4

Global coordination of all of the major business functions permits the location of business activity according to
A) social norms and values.
B) comparative advantage.
C) competitive threat.
D) knowledge base.

Accepted Answer

Global coordination of all major business functions enables companies to locate business activities based on comparative advantage. This implies that businesses can allocate their resources efficiently to gain a competitive advantage in a market where the cost of producing goods or services is lower than its competitors. It involves identifying a company's core competencies and finding the most effective location for each activity in order to produce high-quality goods or services at a low cost. This results in increased efficiency and profitability for the company.

Question 5

Which of the following is not a specific challenge to global business system?
A) shortages of skilled consultants
B) language differences
C) different telecommunication standards
D) different data transfer speeds

Accepted Answer

The answer of Which of the following is not a...

Question 6

In terms of global business strategy and structure, a franchise company will use a policy of
A) centralized production, accounting, marketing, human resources, with strategic management.
B) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
C) dispersed production and marketing, with centralized accounting, human resources and strategic management.
D) dispersed production, marketing, and human resources, with centralized strategic management and finance/accounting.

Accepted Answer

A franchise company typically allows its franchisees to handle production, marketing, and human resources in their local markets. However, it maintains centralized control over strategic management and finance/accounting to ensure consistency and compliance with the franchise system's standards. Therefore, option D, which states dispersed production, marketing, and human resources with centralized strategic management and finance/accounting, aligns with the franchise company's global business strategy and structure.

Question 7

All of the following present challenges to developing a global business except
A) foreign accounting practices.
B) production costs.
C) language differences.
D) exchange rates.

Accepted Answer

While foreign accounting practices, language differences, and exchange rates can all create difficulties for businesses operating on a global level, production costs are an inherent challenge of any type of business and are not unique to global operations. Therefore, B is the best choice as it is the only option that does not specifically relate to developing a global business.

Question 8

Which of the following is not one of the three kinds of organizational governance used by global companies?
A) centralized
B) decentralized
C) coordinated
D) localized

Accepted Answer

The three kinds of organizational governance used by global companies are centralized, decentralized, and coordinated. "Localized" is not a commonly used term to describe organizational governance.

Question 9

A force in the environment to which businesses must respond and that influences the direction of the business is called a business
A) driver.
B) threat.
C) process.
D) matrix.

Accepted Answer

A business driver is a force or factor in the environment that influences the direction and performance of a business. It can be positive (such as new technology) or negative (such as economic downturns) and can create opportunities or challenges for the business. Threats, processes, and matrices are not necessarily forces that businesses must respond to in the same way as business drivers.

Question 10

Most large companies with overseas operations have inherited
A) recently built technology platforms for international systems.
B) batch-oriented reporting from independent foreign divisions to corporate headquarters.
C) transaction-oriented reporting based at the home office for overseas business.
D) global marketing systems developed domestically.

Accepted Answer

Large companies with overseas operations often face challenges in standardizing reporting and data management across different countries and divisions. As a result, many of these companies rely on batch-oriented reporting, which involves consolidating data from independent foreign divisions and sending it to the corporate headquarters for analysis and decision-making. This approach allows for centralized control and standardization, but may result in delays and data inconsistencies.

Question 11

In a multinational business strategy, the ________ business function is decentralized, dispersed to foreign units.
A) finance/accounting
B) production
C) human resources
D) strategic management

Accepted Answer

The answer of In a multinational business strategy, the ________...

Question 12

Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?
A) choosing a global strategy
B) organizing the global business structure
C) organizing the systems management
D) defining the global environment

Accepted Answer

The main organizational issues facing firms who are seeking to globalize include choosing a global strategy, organizing the global business structure, and organizing the systems management. Defining the global environment is not typically considered one of the main organizational issues facing firms.

Question 13

A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ________ strategy.
A) domestic exporter
B) franchising
C) transnational
D) multinational

Accepted Answer

A multinational strategy involves decentralizing production, sales, and marketing operations to other countries while maintaining financial control in the home country.

Question 14

Most companies pursuing a global strategy begin as
A) domestic exporters.
B) multinationals.
C) franchisers.
D) transnationals.

Accepted Answer

Companies pursuing a global strategy often begin as domestic exporters, where they export their products to other countries before expanding their operations through foreign direct investment or establishing subsidiaries in other countries. Multinationals, franchisers, and transnationals are typically larger companies that have already established global operations.

Question 15

The major dimensions of international systems architecture include each of the following except
A) the global environment.
B) corporate global strategy.
C) technology platform.
D) transborder data flows.

Accepted Answer

Transborder data flows are not considered a major dimension of international systems architecture. The major dimensions typically include the global environment, corporate global strategy, and technology platform.

Question 16

Making judgments and taking action on the basis of narrow or personal characteristics is referred to as
A) localization.
B) cooptation.
C) particularism.
D) prejudicial.

Accepted Answer

Particularism refers to making decisions based on narrow or personal characteristics, often prioritizing specific interests over universal principles.

Question 17

German companies
A) do not recognize the profit until the project is completely finished and they have been paid.
B) recognize profits before the project is finished.
C) recognize profits when the project is initialized.
D) do not recognize the profits until they have been formally audited.

Accepted Answer

German companies follow a conservative accounting principle called the "realization principle" which states that revenue can only be recognized when it is earned and realized, meaning the project is completed, and payment has been received. Therefore, German companies do not recognize profit until the project is completely finished and they have been paid.

Question 18

Which of the following is not one of the primary types of system configuration discussed in the chapter?
A) decentralized
B) duplicated
C) coordinated
D) networked

Accepted Answer

Coordinated is not one of the primary types of system configuration discussed in the chapter.

Question 19

In terms of global business strategy and structure, a domestic exporter will use a policy of
A) some dispersed sales, with centralized production, accounting, human resources, and strategic management.
B) centralized production and accounting with decentralized marketing and human resources.
C) centralized production, accounting, marketing, and human resources.
D) dispersed production and marketing, with centralized accounting, human resources and strategic management.

Accepted Answer

A domestic exporter typically centralizes production, accounting, human resources, and strategic management to maintain control and efficiency, while allowing some dispersed sales to reach international markets.

Question 20

General cultural factors driving global business are
A) global communication and transportation technologies, a global knowledge base, and global social norms.
B) the development of global markets, political stability, and a global workforce.
C) the rise of the global workforce, political stability, and a global knowledge base.
D) the rise of a global workforce, global economies of scale, and global production and operations.

Accepted Answer

Global communication and transportation technologies have made it easier and faster to conduct business on a global scale. A global knowledge base allows businesses to share information and learn from each other, while global social norms create a common understanding and acceptance of certain practices. These factors have all contributed to the growth of global business.

Quiz 15: Managing Global Systems

To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms

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.

In terms of global business strategy and structure, a multinational company will use a policy of

Global coordination of all of the major business functions permits the location of business activity according to

Which of the following is not a specific challenge to global business system?

In terms of global business strategy and structure, a franchise company will use a policy of

All of the following present challenges to developing a global business except

Which of the following is not one of the three kinds of organizational governance used by global companies?

A force in the environment to which businesses must respond and that influences the direction of the business is called a business

Most large companies with overseas operations have inherited

In a multinational business strategy, the ________ business function is decentralized, dispersed to foreign units.

Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?

A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ________ strategy.

Most companies pursuing a global strategy begin as

The major dimensions of international systems architecture include each of the following except

Making judgments and taking action on the basis of narrow or personal characteristics is referred to as

German companies

Which of the following is not one of the primary types of system configuration discussed in the chapter?

In terms of global business strategy and structure, a domestic exporter will use a policy of

General cultural factors driving global business are