Question 1

In a multinational strategy, financial management is centralized while production and sales are decentralized.

Accepted Answer

In a multinational strategy, centralized financial management allows for better monitoring and control of financial resources, while decentralization of production and sales allows for adaptation to local market conditions and customer needs.

Question 2

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
E) conglomerate

Accepted Answer

A multinational strategy involves a company controlling finances in its home country while decentralizing production, sales, and marketing operations to various other countries. This approach allows the company to tailor its products and services to meet the specific needs of each local market.

Question 3

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

Accepted Answer

Production costs are not a challenge specific to developing global business systems; they are a general business concern affecting both domestic and international operations. The other options directly impact the complexity and implementation of global systems.

Question 4

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

Accepted Answer

Most companies pursuing a global strategy begin as domestic exporters by selling their products or services to another country. This allows them to test the waters and gain experience in international trade before expanding further into the global market.

Question 5

There are two primary global organization types:
 management centralized in the home country or distributed to foreign centers.

Accepted Answer

The answer of There are two primary global organization types:
...

Question 6

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.
E) use a cloud-based service.

Accepted Answer

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

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.
E) globalization.

Accepted Answer

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

Question 8

Which of the following is not a business driver of global business?
A) global communication and transportation technologies
B) development of global culture
C) emergence of global social norms
D) political stability
E) growth of international systems

Accepted Answer

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

Question 9

Transnational firms have
A) no single national headquarters but many regional headquarters and perhaps a world headquarters.
B) headquarters in each country where they do business.
C) headquarters in the home country with smaller headquarters around the world.
D) no single headquarters.
E) a centralized headquarters but not in the home country.

Accepted Answer

Transnational firms have a decentralized structure with regional headquarters in different locations around the world and a world headquarters that coordinates and manages operations globally. They do not have a single national headquarters or a headquarters in each country they operate in.

Question 10

Which of the following is not a specific challenge to global business systems?
A) shortages of skilled consultants
B) cultural expectations
C) different telecommunication standards
D) different data transfer speeds
E) unreliable phone networks

Accepted Answer

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

Question 11

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.
E) decentralized production, accounting, human resources, with a decentralized management.

Accepted Answer

A franchise company typically allows individual franchisees to operate their businesses independently, including decisions related to production, marketing, and human resources. However, there is typically centralized control over strategic management and finance/accounting in order to maintain consistency across the franchise network. Therefore, option D, which highlights dispersed production, marketing, and human resources with centralized strategic management and finance/accounting, is the best choice.

Question 12

In terms of global business strategy and structure, a multinational strategy
A) centralizes production and accounting and decentralizes marketing and human resources.
B) concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries.
C) centralizes production, accounting, marketing, and human resources.
D) disperses production and marketing, with centralized accounting, human resources and strategic management.
E) concentrates production and marketing in each country, and decentralizes accounting and human resources.

Accepted Answer

A multinational strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. This allows the company to adapt to local market conditions while maintaining centralized control over finances and overall strategy.

Question 13

Which of the following is not one of the primary types of firm strategy discussed in the chapter?
A) domestic exporter
B) multinational
C) franchiser
D) transnational
E) international exporter

Accepted Answer

"International exporter" is not typically recognized as one of the primary types of firm strategy, whereas the others are established categories.

Question 14

What are the organizational principles a company should follow to develop a global company and its information systems support structure?
 Do you agree?
 Would you change these principles, or add others?
 Support your answer.

Accepted Answer

The answer of What are the organizational principles a company...

Question 15

In a transnational business strategy, all of the regional units participate and coordinate over all activities, from production to sales.

Accepted Answer

In a transnational business strategy, regional units are integrated and participate in all activities, from production to sales. This approach emphasizes collaboration and communication among all units to achieve common goals and gain a competitive advantage.

Question 16

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.
E) making local units that are clones of the mother country units.

Accepted Answer

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

Question 17

Describe the four main global strategies that form the basis for global firms' organizational structure.

Accepted Answer

The answer of Describe the four main global strategies that...

Question 18

In a franchiser business strategy, each foreign unit designs its own solutions and systems.

Accepted Answer

In a franchiser business strategy, the franchiser designs and provides the solutions and systems for all units, including foreign ones, to follow. This maintains consistency and brand integrity across all locations.

Question 19

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
E) domestic importer

Accepted Answer

The term "transnational" refers to a type of multi-national corporation that has a strong central management core of decision making, but also allows for considerable dispersal of power and financial resources. This type of governance structure is similar to a federal structure where power is distributed among sub-units while still maintaining a central authority. This allows transnational corporations to operate effectively across different countries and cultures while still maintaining coherence and consistency in decision-making.

Question 20

Which of the following is not one of the system configurations used by global firms?
A) centralized
B) duplicated
C) decentralized coordinated
D) networked
E) localized

Accepted Answer

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

Quiz 15: Managing Global Systems

In a multinational strategy, financial management is centralized while production and sales are decentralized.

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

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

Most companies pursuing a global strategy begin as

There are two primary global organization types: management centralized in the home country or distributed to foreign centers.

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

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

Which of the following is not a business driver of global business?

Transnational firms have

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

Which of the following is not one of the primary types of firm strategy discussed in the chapter?

What are the organizational principles a company should follow to develop a global company and its information systems support structure? Do you agree? Would you change these principles, or add others? Support your answer.

In a transnational business strategy, all of the regional units participate and coordinate over all activities, from production to sales.

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

Describe the four main global strategies that form the basis for global firms' organizational structure.

In a franchiser business strategy, each foreign unit designs its own solutions and systems.

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 system configurations used by global firms?