Deck 9: Global Information Systems

Question 1

With the popularity of the Internet, the use of value-added networks has increased.

Answer 1

False

Question 2

A global information system (GIS) remains unaffected irrespective of a company's size and business needs.

Answer 2

False

Question 3

In an organization with a global structure, the headquarters has the responsibility of selling, marketing, and tailoring products to the requirements and tastes of the countries of its subsidiaries.

Answer 3

False

Question 4

A global information system (GIS) can be defined along two dimensions: customization and communication.

Question 5

With asynchronous transmission, both parties on a network must be connected at the same time.

Question 6

As e-business matures and more companies conduct business online, consumers can engage in comparison shopping more easily.

Question 7

The Internet complicates communication and restricts opportunities for consumers.

Question 8

Companies with a transnational structure have decreased efficiency in production costs because production is spread across more locations.

Question 9

In a multinational structure, financial management is decentralized.

Question 10

Local hardware and software vendors influence which applications a multinational company chooses.

Question 11

In an organization with a global structure, to achieve organizational efficiency, duplicate information systems must be eliminated.

Question 12

An organization's structure usually determines the architecture of its global information system (GIS).

Question 13

Operational support provided by a global information system (GIS) involves broad and long-term goals.

Question 14

Time zones pose difficulties in managing a global information system (GIS).

Question 15

The increase in direct buyer-seller communication through e-business has eliminated the opportunities for intermediaries.

Question 16

Currency conversion is a challenge in global database development.

Question 17

With a global information system (GIS) in place, a company can efficiently track production schedules.

Question 18

In the context of a GIS, which of the following is true of high coordination?

A) It enables a company's subsidiaries to function with complete autonomy.
B) It increases efficiency at the expense of the effectiveness in meeting customers' needs.
C) It increases operational costs by a large margin.
D) It gives flexibility in responding to competitors in different markets.

Question 19

In an organization with an international structure, information-systems personnel are regularly exchanged among locations to encourage joint development of applications for marketing, finance, and production.

Question 20

Lack of standardization can impede the development of a cohesive global information system (GIS) that is capable of sharing information resources across borders.

Question 21

Which of the following statements is true of a global information system (GIS)?

A) It incorporates technologies that are specific to a particular country.
B) It facilitates communication between headquarters and subsidiaries in other countries.
C) It differs from a typical information system as it excludes operations management.
D) It enables a company's subsidiaries to function with complete autonomy.

Question 22

Which of the following statements is true of offshore outsourcing?

A) Improved telecommunication systems have increased its attractiveness.
B) The increased cost of communication has reduced its popularity.
C) The limited availability of the Internet has reduced its effectiveness.
D) Reduced bandwidth has increased its efficiency to perform with low latency.

Question 23

In the context of a global information system (GIS), a global network must have _____ to guide packets to their destinations.

A) firewalls
B) cookies
C) switching nodes
D) proxy servers

Question 24

One of the issues with a global information system is that too much__________can decrease an organization's flexibility in responding to local preferences-even time differences.

A) localization
B) regionalization
C) standardization
D) customization
E) Select

Question 25

Which of the following countries was among the top Asia Pacific offshore locations for outsourcing in 2014?

A) India
B) Nepal
C) Japan
D) North Korea

Question 26

Which of the following statements is true of information systems?

A) Using information systems on a global scale is more challenging than doing so on a local scale.
B) They weaken communication between organizations and the public.
C) Designing and implementing a global database is easy.
D) They deflect differentiation and focus strategies.

Question 27

__________, which are products or services that have been standardized for all markets, are becoming increasingly important in international marketing efforts.

A) Global products
B) Domestic products
C) Local products
D) Regional products
E) Select

Question 28

Symbic Foods, a chain of fast food restaurants, has included a drop-down menu on its main Web site. With this drop-down menu, people can view their country-specific Web site, which contains information about the dishes that Symbic Foods serves in that country. In this case, the strategy adopted by Symbic Foods is called _____.

A) localization of a Web site
B) standardization of a Web site
C) centralization of a Web site
D) generalization of a Web site

Question 29

In a global information system (GIS), high coordination:

A) increases overhead and operational costs.
B) increases efficiency at the expense of the effectiveness in meeting customers' requirements.
C) helps maintain control of market needs around the world.
D) helps provide a standard response to competitors in different countries and markets.

Question 30

After a global network is in place, a company must _____.

A) decide which types of information-sharing technology it will be using
B) consider its objectives to determine the network architecture
C) determine the best communication media to meet global performance
D) use standardized software and hardware across all countries

Question 31

Which of the following statements is true of multinational corporations (MNCs)?

A) MNCs are government organizations.
B) MNCs have assets and operations only in their home country.
C) MNCs deliver products and services across national borders.
D) MNCs are essentially decentralized.

Question 32

A(n) _____ for global control over an organization's resources is the foundation of any global information system (GIS).

A) integrated network
B) segregated network
C) disjoint network
D) scattered network

Question 33

To design a successful global information system (GIS), management of a company:

A) should not assume that customers' preferences will not change.
B) should assume that consumer needs will remain the same.
C) should not assume that the company's products will sell at varying rates.
D) should assume that the company will not lose competitive advantage.

Question 34

_____ of a global information system (GIS) concentrates on medium-range activities that move an organization toward achieving long-term goals.

A) Differential support
B) Strategic support
C) Operational support
D) Tactical support

Question 35

If a company uses multimedia applications in addition to normal file and database sharing, _____ is more efficient.

A) full-duplex transmission
B) half-duplex transmission
C) multi-duplex transmission
D) dual-duplex transmission

Question 36

Diverse regulatory practices _____ the integration process of a global information system (GIS).

A) impede
B) facilitate
C) empower
D) speed up

Question 37

In the context of a global information system (GIS), _____ offer electronic data interchange standards, encryption, secure e-mail, data synchronization, and other services to conduct international business.

A) crawler-based networks
B) value-added networks
C) human-powered networks
D) brick-and-mortar networks

Question 38

_____ of a global information system (GIS) involves broad and long-term goals.

A) Tactical support
B) Dynamic support
C) Operational support
D) Strategic support

Question 39

With _____ transmission, both parties in a global network are connected at the same time, as in a phone call.

A) synchronous
B) asynchronous
C) symmetric
D) asymmetric

Question 40

With an__________approach, an organization chooses an outsourcing firm in another country that can provide needed services and products.

A) offshore outsourcing
B) online outsourcing
C) onshore outsourcing
D) offline outsourcing
E) Select

Question 41

Which of the following statements is true of a global organizational structure?

A) It requires an extensive communication network.
B) It uses highly decentralized information systems.
C) It easily integrates production, marketing, and human resources.
D) It provides complete autonomy to the subsidiaries of the parent organization.

Question 42

Considering the entire organization's operational efficiency is critical in coordinating international business activities, so global companies need to change their _____ strategies in an effort to respond to the global market.

A) production and marketing
B) sales and distribution
C) service management
D) local business

Question 43

In the context of a global information system (GIS), which of the following kinds of managerial support involves day-to-day activities?

A) Operational support
B) Strategic support
C) Tactical support
D) Dynamic support

Question 44

An organization with a(n)__________operates much like a multinational corporation, but subsidiaries depend on headquarters more for process and production decisions.

A) international structure
B) regional structure
C) public structure
D) continental structure
E) Select

Question 45

An organization with a(n)__________, sometimes called a "franchiser," uses highly centralized information systems.

A) global structure
B) local structure
C) domestic structure
D) insular structure
E) Select

Question 46

Coordination in a global information system requires a(n) _____ architecture for data, standardization within departments.

A) passive
B) autocratic
C) decentralized
D) centralized

Question 47

In the context of a global information system (GIS), _____ refers to the use of managerial power to ensure adherence to the organization's goals.

A) standardization
B) transparency
C) control
D) coordination

Question 48

Foreign exchange systems that allow traders and brokers from around the world to interact are an example of information systems that support a(n) _____.

A) multinational structure
B) global structure
C) transnational structure
D) international structure

Question 49

The expansion of global markets is a major factor in developing global information systems to handle _____ demands of integrated worldwide services.

A) customers'
B) sellers'
C) suppliers'
D) dealers'

Question 50

A__________is an organization with assets and operations in at least one country other than its home country.

A) multinational corporation
B) transnational company
C) universal corporation
D) local company
E) Select

Question 51

An organization with a(n) _____ might have several regional divisions that share authority and responsibility, but in general, it does not have its headquarters in a particular country.

A) global structure
B) transnational structure
C) multinational structure
D) international structure

Question 52

_____ is an operational requirement for a global information system (GIS).

A) Management of global tax risks
B) Global data access
C) Management of political conflicts
D) Strategic planning support

Question 53

One of the issues with a _____ is that subsidiaries rely on headquarters for all process and control decisions as well as system design and implementation.

A) multinational structure
B) global structure
C) regional structure
D) transnational structure

Question 54

__________focuses on regionalizing resources more effectively and responding to rapid environmental changes, such as increased political and foreign exchange risks and global competition.

A) Strategic planning support
B) Management of global tax risks
C) Global data access
D) Consolidated global reporting
E) Select

Question 55

The trade-off between the amount of control needed and the amount of__________needed, which are the two dimensions of a global information system (GIS), defines an organization's globalization strategy.

A) coordination
B) standardization
C) regulation
D) direction
E) Select

Question 56

The integration needed to manage production, marketing, and human resources is difficult to achieve with a global structure because of the _____.

A) excessive autonomy given to subsidiaries
B) presence of duplicate information systems
C) use of highly decentralized information systems
D) heavy reliance on headquarters

Question 57

In an organization with a(n)__________, the parent company and all the subsidiaries work together in designing policies, procedures, and logistics for delivering products and services to the right market.

A) transnational structure
B) international structure
C) global structure
D) universal structure
E) Select

Question 58

Transborder data flow (TDF) comprises national laws and international agreements on _____.

A) ethical standards
B) software licenses
C) intellectual properties
D) privacy protection

Question 59

In a(n) _____, a company's subsidiaries operate autonomously but regularly report to the parent company.

A) multinational structure
B) transnational structure
C) international structure
D) global structure

Question 60

__________restricts what type of data can be captured and transmitted in foreign countries.

A) Transborder data flow
B) Transcontinental data flow
C) International data flow
D) Tariff data flow
E) Select

Question 61

In the context of determining the best communication media to meet global performance, the _____ factor involves how immune a communication medium is to outside electronic interference.

A) bandwidth
B) range
C) cost
D) noise

Question 62

Before adding a global information system (GIS), international companies must take into consideration the _____ infrastructures of the countries where its subsidiaries are located.

A) management
B) social
C) telecommunication
D) power transmission

Question 63

__________is an operational requirement of a global information system (GIS) that includes accounting and financial data, manufacturing updates, inventory, and so forth.

A) Consolidated global reporting
B) Communication between headquarters and subsidiaries
C) Global data access
D) Strategic planning support
E) Select

Question 64

Control in a global information system requires _____.

A) the use of variable definitions across an organization
B) decentralized architectures for data
C) flexible formats for reports
D) the use of defined behaviors for different processes

Question 65

In the context of a global information system (GIS), _____ is the process of managing the interaction among activities in different, specialized parts of an organization.

A) coordination
B) socialization
C) regionalization
D) globalization

Question 66

In the context of the requirement of skilled analysts for implementing a global information system (GIS), there is a severe shortage of qualified information systems:

A) professionals in the United States.
B) consultants in Korea.
C) project managers in Germany.
D) quality analysts in Japan.

Question 67

By generating and delivering timely and relevant information supported by networks, _____ creates new opportunities for conducting commercial activities.

A) cybersquatting
B) e-business
C) phishing
D) transborder data flow

Question 68

Aton Motors, an automobile manufacturer, establishes its manufacturing units in Argentina because of the low cost of the metal used to make automobile frames. In this scenario, Aton Motors has _____ its operations.

A) regionalized
B) standardized
C) generalized
D) centralized

Question 69

Initially, offshore outsourcing was used mostly in manufacturing to find _____.

A) cheap labor
B) help desk support
C) quality tester
D) manufacturing engineers

Question 70

Which of the following is considered a core function of a global information system (GIS)?

A) Tactical planning
B) Strategic planning
C) Operational planning
D) Contingency planning

Question 71

A__________is a system for managing global operations, supporting an international company's decision-making processes, and dealing with complex variables in global operations and decision making.

A) global information system
B) global analytics system
C) global broadcast system
D) global economic system
E) Select

Question 72

__________is a major factor in the widespread use of global information systems.

A) E-business
B) Cybersquatting
C) Traditional commerce
D) Social engineering
E) Select

Question 73

A__________is a system that incorporates all the technologies and applications found in a typical information system to gather, store, manipulate, and transmit data across cultural and geographic boundaries.

A) global information system
B) global analytics system
C) global broadcast system
D) global economic system
E) Select

Question 74

The coordination dimension of a global information system (GIS) requires _____.

A) technologies that exclude informal communication
B) a centralized architecture for data
C) standardization within departments
D) segregated systems

Question 75

Designing and implementing a global database is a technical challenge, mainly because of the _____.

A) variations in the business needs of an organization
B) different character sets used for the names of people and places
C) complications involved in providing complete autonomy to a company's subsidiaries
D) need to transfer data across cultural and geographic boundaries

Question 76

_____ are considered the first large-scale interactive global system.

A) Credit card services
B) Hotel reservation systems
C) Airline reservation systems
D) Car rental services

Question 77

Which of the following is a strategic requirement for a global information system (GIS)?

A) Global data access
B) Consolidated global reporting
C) Management of global tax risks
D) Communication between headquarters and subsidiaries

Question 78

__________are private multipoint networks managed by a third party and used by organizations on a subscription basis.

A) Value-added networks
B) Subscription networks
C) Social networks
D) Communication networks
E) Select

Question 79

A manufacturer moving operations to another country because of the advantages available in that country is involved in _____ the operations.

A) generalizing
B) standardizing
C) regionalizing
D) centralizing

Question 80

Some companies create separate Web sites for each country in which they do business. This is called _____ of a Web site.

A) standardization
B) localization
C) centralization
D) generalization