Question 1

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 for dispersed production and marketing, as franchisees operate within their own local markets. However, there is a need for centralized strategic management to ensure brand consistency and overall direction. Additionally, finance and accounting are typically centralized to ensure proper management and oversight of financial operations. Human resources may also benefit from some centralization to ensure consistency in employee policies and procedures. Therefore, option D is the best choice as it balances dispersed operations with centralized management in key areas.

Question 2

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

The answer of In terms of global business strategy and...

Question 3

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 permits the location of business activity according to comparative advantage. This means that a company can locate its operations in countries where it can gain a competitive advantage due to factors such as lower labour costs, access to natural resources or a particular expertise. By doing so, it can reduce its costs and increase its profits, ultimately improving its competitiveness in the global marketplace. Social norms and values, competitive threat, and knowledge base are also important considerations for global business, but they do not directly relate to the location of business activity.

Question 4

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 5

Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information?
A) Free Trade Agreement
B) European Union Data Protection Directive
C) United Nations Privacy Act
D) European Transborder Data Flow Act

Accepted Answer

The European Union Data Protection Directive, also known as the GDPR (General Data Protection Regulation), restricts the flow of personal information to countries that do not meet its standards for protecting personal information. It requires that data controllers ensure that any transfer of personal data to countries outside the EU is only made if that country has an adequate level of protection.

Question 6

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 the "completion principle" which means that they recognize revenue and profit only when the project is completely finished and they have been paid for it. This is different from some other countries where revenue and profit can be recognized before the completion of the project.

Question 7

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

The answer of Making judgments and taking action on the...

Question 8

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

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

Question 9

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

The answer of In terms of global business strategy and...

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 have independent foreign divisions with their own reporting systems. Inheritances of batch-oriented reporting ensures that reports are sent in batches at fixed intervals to avoid overwhelming the system or missing deadlines.

Question 11

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

The answer of To avoid the cost and uncertainty of...

Question 12

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

The answer of A company that controls finances in the...

Question 13

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 force in the environment that influences the direction of the business is commonly referred to as a "business driver." This can include factors such as technological advancements, shifts in consumer preferences, changes in government regulations, and more. Other answer choices like "threat," "process," and "matrix" do not accurately describe this concept.

Question 14

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 description fits a transnational firm, which is characterized by a strong central management that coordinates global strategy, but with considerable dispersion of power and resources among different subsidiaries or regions. Domestic exporter firms focus on exporting goods and services from a home country, while multinational firms may have decentralized operations but still maintain significant centralized control. Franchisers have a centralized system of control over franchisees, but this is not comparable to the federal structure of a transnational firm.

Question 15

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 governance is not one of the three.

Question 16

General challenges and obstacles to global business systems are typified by
A) different technology standards, shortages of skilled consultants, and social expectations.
B) brand-name expectations, language differences, and commercial regulations.
C) different work hours, transborder data and privacy laws, and different technology standards.
D) different communications standards, language differences, and network reliability.

Accepted Answer

The answer of General challenges and obstacles to global business...

Question 17

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

Accepted Answer

Most companies pursuing a global strategy start as domestic exporters, meaning they produce their products/services in their home country and sell them to foreign markets. As they expand their operations and establish a presence in multiple countries, they may become multinationals, franchisers, or transnationals.

Question 18

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 for businesses to expand worldwide. A global knowledge base has allowed for the transfer of information and ideas across countries. Global social norms have become more similar due to increased global communication and travel, making it easier for businesses to adapt to different cultures.

Question 19

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

Defining the global environment is not one of the main organizational issues facing firms seeking to globalize. The main issues are choosing a global strategy, organizing the global business structure, and organizing systems management. Defining the global environment is more of an external factor that firms must consider, such as cultural differences and legal regulations.

Question 20

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

The answer of The major dimensions of international systems architecture...

Quiz 15: Managing Global Systems

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

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?

Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information?

German companies

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

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

Most large companies with overseas operations have inherited

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

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

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

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.

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

General challenges and obstacles to global business systems are typified by

Most companies pursuing a global strategy begin as

General cultural factors driving global business are

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

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