Deck 15: Managing Global Systems

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Question
The emergence of a global media culture is an important driver of global trade.
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Question
Which of the following is not a general cultural factor driving global business?

A)Global communication and transportation technologies
B)Political stability
C)Global knowledge base
D)Rise of shared values
E)Global social norms
Question
What is the first thing you should consider when thinking about building an international information system?

A)The state of world politics
B)New technologies that will help you achieve your goals
C)The global environment where your business will operate,and identify the business drivers for your firm and industry
D)The business challenges you face in the global environment
E)The different computing and communication standards in the world
Question
Global business drivers can be divided into two groups: general cultural factors and specific business factors.
Question
Final assembly of Apple's iPhone occurs in which of the following locations?

A)United States
B)Japan
C)South Korea
D)China
E)Germany
Question
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.
E)management and business processes.
Question
The EU General Data Protection Regulation (GDPR):

A)requires that European companies meet U.S.data privacy standards.
B)provides additional privacy protections for Americans doing business in Europe.
C)provides additional privacy protection for European citizens and applies to all data produced by EU citizens or processed in Europe.
D)prevents the transfer of private personal information among EU nations.
E)allows European countries to adopt their own privacy legislation.
Question
New levels of global coordination of all of the major business functions permit the location of business activity according to:

A)comparative advantage.
B)social norms and values.
C)competitive threat.
D)knowledge base.
E)labor costs.
Question
Which of the following statements about accounting practices in different countries is not true?

A)German companies generally do not recognize a profit from a venture until the project is completely finished and they have been paid.
B)British firms recognize profits before a project is finished,once they are reasonably certain they will get the money.
C)Dutch firms separate tax calculations from reports to shareholders.
D)U)S.accounting practices focus on demonstrating compliance with strict rules.
E)British firms focus on showing shareholders how fast profits are growing.
Question
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
Question
Which of the following is the best definition of international information systems?

A)Systems that talk to one another using the global Internet
B)Systems used by international businesses
C)Business processes that span the globe
D)Basic information systems required by organizations to coordinate worldwide trade and other activities
E)Systems that are developed by global firms
Question
Consumers who only want to purchase products made in their own country are an example of:

A)cultural particularism.
B)political culture.
C)universal global attitudes.
D)different laws in different countries.
E)different business standards.
Question
Which of the following statements about transborder data flow is not true?

A)The European Data Directive of 1998 standardized privacy protection among EU nations.
B)The European Data Directive of 1998 allowed for the transfer of personal data to systems located in the United States and other nations where these systems met European privacy standards.
C)The General Data Protection Regulation (GDPR)provides additional privacy protection for European citizens and applies to all data produced by EU citizens.
D)The GDPR applies to all companies collecting data on EU citizens even if they are not located in the EU.
E)The GDPR applies only to citizens of the EU and does not apply to non-citizen residents.
Question
Most large companies with overseas operations have inherited:

A)recently built technology platforms for international systems.
B)patchwork international systems from the distant past.
C)transaction-oriented reporting based at the home office for overseas business.
D)global marketing systems developed domestically.
E)enterprise systems developed by local firms.
Question
Making judgments and taking action on the basis of narrow or personal characteristics is referred to as:

A)localization.
B)cooptation.
C)particularism.
D)prejudice.
E)globalization.
Question
The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets.
Question
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.
Question
Transborder data flow refers to:

A)the flow of information in international systems.
B)the ways in which a country's laws change the flow of data from one country to another.
C)the business of moving information from one country to another.
D)the movement of information across international boundaries.
E)the business process of coordinating information from many different countries.
Question
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
Question
Which of the following industries is most affected by globalization?

A)Telecommunications
B)Manufacturing
C)Law
D)Entertainment
E)Transportation
Question
The shortage of skilled consultants is one challenging obstacle to global business systems.
Question
List at least four general cultural factors and four specific business factors driving global business.Which two factors (one of each)do you feel are most problematic at the current moment? Why?
Question
A powerful strategic advantage for a globalized firm is the ability to charge different prices for the same product in different countries.
Question
Micromarketing involves marketing to specific countries rather than global markets.
Question
Most companies pursuing a global strategy begin as:

A)domestic exporters.
B)multinationals.
C)franchisers.
D)transnationals.
E)conglomerate corporations.
Question
What steps should you take to develop an international information systems architecture?
Question
How do cultural,legal,political,and social expectations affect global business?
Question
The growth of powerful communications technologies and the emergence of world cultures have failed to create a foundation for global markets.
Question
European countries have very strict laws concerning transborder data flows and privacy.
Question
Define transborder data flow and explain what makes it a business challenge for global companies.
Question
Language remains a significant challenge to businesses operating on a global scale.
Question
In a multinational business strategy,the finance/accounting function is:

A)centralized.
B)dispersed.
C)coordinated.
D)mixed.
E)performed by local divisions in different countries.
Question
What are the four specific types of business challenges to global business systems? Which one do you think will be easiest to solve? Why?
Question
The growth of international trade has radically altered domestic economies around the globe.
Question
Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services.
Question
The EU General Data Protection Regulation (GDPR)applies to all data produced by EU citizens,whether or not the company collecting the data in question is located within the EU,as well as all people whose data is stored within the EU,whether or not they are actually EU citizens.
Question
Accounting practices are largely standard among developed countries.
Question
The last step in establishing a corporate strategy and structure for globalization is to determine the appropriate products.
Question
Global economies of scale are facilitated by global markets,production,and administration.
Question
In terms of global business strategy and structure,a domestic exporter strategy:

A)centralizes production,accounting,human resources,and strategic management,and uses a mixed model of sales and marketing.
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.
Question
In networked systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.
E)development occurs at the home base but operations are handed over to autonomous units in foreign locations.
Question
In duplicated systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.
E)systems development is a combined effort of domestic and international units which are then duplicated across the world.
Question
In a transnational business strategy,nearly all the value-adding activities are managed from a global perspective without reference to national borders,optimizing sources of supply and demand wherever they appear,and taking advantage of any local competitive advantages.
Question
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.
Question
Multinational companies tend to dominantly have ________ systems.

A)duplicated
B)centralized
C)networked
D)decentralized
E)autonomous
Question
The network systems structure is the most visible in ________ services.

A)production
B)financial
C)marketing
D)software design
E)administrative
Question
Which of the following is an emerging pattern of system configuration for multinational companies?

A)Duplicated
B)Centralized
C)Networked
D)Decentralized
E)Autonomous
Question
Domestic exporters typically have highly ________ systems.

A)duplicated
B)centralized
C)networked
D)decentralized
E)autonomous
Question
Which of the following is the dominant pattern of governance used by transnational firms?

A)Centralized
B)Duplicated
C)Decentralized
D)Federal structure
E)Localized
Question
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
Question
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
Question
In decentralized systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.
E)all systems are designed in domestic headquarters and then distributed to foreign units.
Question
Which of the following statements about transnational firms is not true?

A)Transnational firms have many regional headquarters and perhaps a world headquarters.
B)Transnational firms are stateless.
C)Transnational firms view the entire globe as their management frame of reference.
D)Transnational firms have no single headquarters.
E)Many firms have attained transnational status.
Question
Which of the following statements about networked systems is not true?

A)Networked systems require a powerful telecommunications backbone.
B)Networked systems require a culture of shared applications development.
C)Networked systems require a shared management culture that crosses cultural barriers.
D)Networked systems are those in which there is a solid,singular global environment for developing and operating systems.
E)Networked systems are an emerging trend for multinational firms.
Question
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)coordinated production,marketing,and human resources,with centralized strategic management and finance/accounting.
E)decentralized production,accounting,human resources,with a decentralized management.
Question
In centralized systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)systems development and operations occur totally at the domestic home base.
E)systems development is a combined effort of domestic and international units.
Question
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
E)Organizing the business
Question
Of the following,which is one of the central principles recommended in this chapter for a firm organizing itself for international business?

A)Organize value-adding activities along lines of comparative advantage.
B)Establish multiple offices for international systems and a global CIO position.
C)Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.
D)Develop and operate systems units at the international level first.
E)Centralize production,but decentralize marketing and sales to be close to the customer.
Question
Franchise companies have typically had ________ systems.

A)duplicated
B)centralized
C)networked
D)decentralized
E)autonomous
Question
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
Question
Which of the following is not an important challenge when implementing a global information system solution?

A)Agreeing on common user requirements
B)Finding a provider of global software
C)Introducing changes in business processes
D)Coordinating applications development
E)Coordinating software releases
Question
In a multinational strategy,financial management is centralized while production and sales are decentralized.
Question
One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.
Question
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.
Question
List and describe four types of systems configurations used by international firms to fit their global strategies.
Question
The way to identify core business processes is to conduct a:

A)cost-benefit analysis.
B)work-flow analysis.
C)business process analysis.
D)feasibility analysis.
E)systems analysis.
Question
When developing a global system,bringing the opposition of local groups into the process of designing and implementing the solution without giving up control over the direction and nature of the change is called:

A)cooptation.
B)change management.
C)implementation.
D)advocacy.
E)cooperation.
Question
Which of the following is not one of the main benefits to implementing global systems?

A)Superior management and coordination
B)Vast improvements in operation
C)New economies of scale at production facilities
D)Reduced hardware and software costs
E)Optimization of the use of corporate funds
Question
Global systems allow fixed costs to be amortized over a much larger customer base.
Question
Describe the four main global strategies that form the basis for global firms' organizational structure.
Question
Success as a change agent depends on legitimacy,authority,and ability to involve users in the change design process.
Question
There are two primary global organization types: management centralized in the home country or distributed to foreign centers.
Question
Transnational centers of excellence do all of the following except:

A)perform initial identification and specification of business processes.
B)define information requirements.
C)perform business and systems analysis.
D)accomplish all design and testing.
E)implement the system.
Question
In a franchiser business strategy,each foreign unit uses the same systems developed by the firm regardless of their location.
Question
The chapter outlines four steps in developing an effective global system solution.Which of the following is not one of these steps?

A)Identify which local systems need to be replaced.
B)Identify the core systems to coordinate centrally.
C)Choose a developmental approach,incremental,evolutionary,or other.
D)Make the benefits clear.
E)Define the core business processes.
Question
Which of the following methods of encouraging local users to support global systems should be avoided as much as possible?

A)Permitting each country unit the opportunity to develop a transnational application first in its home territory and then throughout the world
B)Developing transnational centers of excellence
C)Requiring local units to agree on a short list of transnational systems
D)Using raw power
E)Involving users in the creation of the design without giving up control over the development of the project to parochial interests
Question
Which of the following is not one of the principal management challenges in developing global systems?

A)Encouraging local users to support global systems
B)Coordinating applications development
C)Defining an acceptable test plan
D)Agreeing on common user requirements
E)Introducing changes in business processes
Question
Which systems are worth sharing on a transnational basis,from a cost and feasibility point of view?

A)Only some core systems that support functions that are absolutely critical to the organization
B)Core systems and worthwhile provincial systems
C)Core systems and any financial systems that can be easily integrated with each other
D)Financial and accounting systems
E)Systems that support decentralized units
Question
Which of the following occurs as a firm moves from local option systems to regional and global systems?

A)Agency costs increase.
B)Coordination costs decrease.
C)Transaction costs increase.
D)Both transaction and agency costs increase.
E)All costs increase.
Question
In order to define centers of excellence in a global firm,you first need to identify:

A)functional areas.
B)core business processes.
C)SOPs.
D)core competencies.
E)international best practices.
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Deck 15: Managing Global Systems
1
The emergence of a global media culture is an important driver of global trade.
True
2
Which of the following is not a general cultural factor driving global business?

A)Global communication and transportation technologies
B)Political stability
C)Global knowledge base
D)Rise of shared values
E)Global social norms
D
3
What is the first thing you should consider when thinking about building an international information system?

A)The state of world politics
B)New technologies that will help you achieve your goals
C)The global environment where your business will operate,and identify the business drivers for your firm and industry
D)The business challenges you face in the global environment
E)The different computing and communication standards in the world
C
4
Global business drivers can be divided into two groups: general cultural factors and specific business factors.
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k this deck
5
Final assembly of Apple's iPhone occurs in which of the following locations?

A)United States
B)Japan
C)South Korea
D)China
E)Germany
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Unlock Deck
k this deck
6
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.
E)management and business processes.
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Unlock Deck
k this deck
7
The EU General Data Protection Regulation (GDPR):

A)requires that European companies meet U.S.data privacy standards.
B)provides additional privacy protections for Americans doing business in Europe.
C)provides additional privacy protection for European citizens and applies to all data produced by EU citizens or processed in Europe.
D)prevents the transfer of private personal information among EU nations.
E)allows European countries to adopt their own privacy legislation.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
8
New levels of global coordination of all of the major business functions permit the location of business activity according to:

A)comparative advantage.
B)social norms and values.
C)competitive threat.
D)knowledge base.
E)labor costs.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
9
Which of the following statements about accounting practices in different countries is not true?

A)German companies generally do not recognize a profit from a venture until the project is completely finished and they have been paid.
B)British firms recognize profits before a project is finished,once they are reasonably certain they will get the money.
C)Dutch firms separate tax calculations from reports to shareholders.
D)U)S.accounting practices focus on demonstrating compliance with strict rules.
E)British firms focus on showing shareholders how fast profits are growing.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
10
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
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Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
11
Which of the following is the best definition of international information systems?

A)Systems that talk to one another using the global Internet
B)Systems used by international businesses
C)Business processes that span the globe
D)Basic information systems required by organizations to coordinate worldwide trade and other activities
E)Systems that are developed by global firms
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Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
12
Consumers who only want to purchase products made in their own country are an example of:

A)cultural particularism.
B)political culture.
C)universal global attitudes.
D)different laws in different countries.
E)different business standards.
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Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
13
Which of the following statements about transborder data flow is not true?

A)The European Data Directive of 1998 standardized privacy protection among EU nations.
B)The European Data Directive of 1998 allowed for the transfer of personal data to systems located in the United States and other nations where these systems met European privacy standards.
C)The General Data Protection Regulation (GDPR)provides additional privacy protection for European citizens and applies to all data produced by EU citizens.
D)The GDPR applies to all companies collecting data on EU citizens even if they are not located in the EU.
E)The GDPR applies only to citizens of the EU and does not apply to non-citizen residents.
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Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
14
Most large companies with overseas operations have inherited:

A)recently built technology platforms for international systems.
B)patchwork international systems from the distant past.
C)transaction-oriented reporting based at the home office for overseas business.
D)global marketing systems developed domestically.
E)enterprise systems developed by local firms.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
15
Making judgments and taking action on the basis of narrow or personal characteristics is referred to as:

A)localization.
B)cooptation.
C)particularism.
D)prejudice.
E)globalization.
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Unlock Deck
k this deck
16
The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets.
Unlock Deck
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Unlock Deck
k this deck
17
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.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
18
Transborder data flow refers to:

A)the flow of information in international systems.
B)the ways in which a country's laws change the flow of data from one country to another.
C)the business of moving information from one country to another.
D)the movement of information across international boundaries.
E)the business process of coordinating information from many different countries.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
19
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
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
20
Which of the following industries is most affected by globalization?

A)Telecommunications
B)Manufacturing
C)Law
D)Entertainment
E)Transportation
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21
The shortage of skilled consultants is one challenging obstacle to global business systems.
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k this deck
22
List at least four general cultural factors and four specific business factors driving global business.Which two factors (one of each)do you feel are most problematic at the current moment? Why?
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23
A powerful strategic advantage for a globalized firm is the ability to charge different prices for the same product in different countries.
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Unlock Deck
k this deck
24
Micromarketing involves marketing to specific countries rather than global markets.
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k this deck
25
Most companies pursuing a global strategy begin as:

A)domestic exporters.
B)multinationals.
C)franchisers.
D)transnationals.
E)conglomerate corporations.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
26
What steps should you take to develop an international information systems architecture?
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k this deck
27
How do cultural,legal,political,and social expectations affect global business?
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k this deck
28
The growth of powerful communications technologies and the emergence of world cultures have failed to create a foundation for global markets.
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Unlock Deck
k this deck
29
European countries have very strict laws concerning transborder data flows and privacy.
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k this deck
30
Define transborder data flow and explain what makes it a business challenge for global companies.
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k this deck
31
Language remains a significant challenge to businesses operating on a global scale.
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Unlock Deck
k this deck
32
In a multinational business strategy,the finance/accounting function is:

A)centralized.
B)dispersed.
C)coordinated.
D)mixed.
E)performed by local divisions in different countries.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
33
What are the four specific types of business challenges to global business systems? Which one do you think will be easiest to solve? Why?
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k this deck
34
The growth of international trade has radically altered domestic economies around the globe.
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k this deck
35
Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services.
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Unlock for access to all 100 flashcards in this deck.
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k this deck
36
The EU General Data Protection Regulation (GDPR)applies to all data produced by EU citizens,whether or not the company collecting the data in question is located within the EU,as well as all people whose data is stored within the EU,whether or not they are actually EU citizens.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
37
Accounting practices are largely standard among developed countries.
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k this deck
38
The last step in establishing a corporate strategy and structure for globalization is to determine the appropriate products.
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Unlock Deck
k this deck
39
Global economies of scale are facilitated by global markets,production,and administration.
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k this deck
40
In terms of global business strategy and structure,a domestic exporter strategy:

A)centralizes production,accounting,human resources,and strategic management,and uses a mixed model of sales and marketing.
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.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
Unlock Deck
k this deck
41
In networked systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.
E)development occurs at the home base but operations are handed over to autonomous units in foreign locations.
Unlock Deck
Unlock for access to all 100 flashcards in this deck.
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k this deck
42
In duplicated systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.
E)systems development is a combined effort of domestic and international units which are then duplicated across the world.
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43
In a transnational business strategy,nearly all the value-adding activities are managed from a global perspective without reference to national borders,optimizing sources of supply and demand wherever they appear,and taking advantage of any local competitive advantages.
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44
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.
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45
Multinational companies tend to dominantly have ________ systems.

A)duplicated
B)centralized
C)networked
D)decentralized
E)autonomous
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46
The network systems structure is the most visible in ________ services.

A)production
B)financial
C)marketing
D)software design
E)administrative
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47
Which of the following is an emerging pattern of system configuration for multinational companies?

A)Duplicated
B)Centralized
C)Networked
D)Decentralized
E)Autonomous
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48
Domestic exporters typically have highly ________ systems.

A)duplicated
B)centralized
C)networked
D)decentralized
E)autonomous
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49
Which of the following is the dominant pattern of governance used by transnational firms?

A)Centralized
B)Duplicated
C)Decentralized
D)Federal structure
E)Localized
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50
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
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51
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
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52
In decentralized systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)foreign units design the solutions and systems used at the domestic home base.
E)all systems are designed in domestic headquarters and then distributed to foreign units.
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53
Which of the following statements about transnational firms is not true?

A)Transnational firms have many regional headquarters and perhaps a world headquarters.
B)Transnational firms are stateless.
C)Transnational firms view the entire globe as their management frame of reference.
D)Transnational firms have no single headquarters.
E)Many firms have attained transnational status.
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54
Which of the following statements about networked systems is not true?

A)Networked systems require a powerful telecommunications backbone.
B)Networked systems require a culture of shared applications development.
C)Networked systems require a shared management culture that crosses cultural barriers.
D)Networked systems are those in which there is a solid,singular global environment for developing and operating systems.
E)Networked systems are an emerging trend for multinational firms.
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55
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)coordinated production,marketing,and human resources,with centralized strategic management and finance/accounting.
E)decentralized production,accounting,human resources,with a decentralized management.
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56
In centralized systems:

A)development occurs at the home base and operations are handed over to autonomous units in foreign locations.
B)each foreign unit designs its own unique solutions and systems.
C)systems development and operations occur in an integrated and coordinated fashion across all units.
D)systems development and operations occur totally at the domestic home base.
E)systems development is a combined effort of domestic and international units.
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57
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
E)Organizing the business
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58
Of the following,which is one of the central principles recommended in this chapter for a firm organizing itself for international business?

A)Organize value-adding activities along lines of comparative advantage.
B)Establish multiple offices for international systems and a global CIO position.
C)Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.
D)Develop and operate systems units at the international level first.
E)Centralize production,but decentralize marketing and sales to be close to the customer.
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59
Franchise companies have typically had ________ systems.

A)duplicated
B)centralized
C)networked
D)decentralized
E)autonomous
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60
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
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61
Which of the following is not an important challenge when implementing a global information system solution?

A)Agreeing on common user requirements
B)Finding a provider of global software
C)Introducing changes in business processes
D)Coordinating applications development
E)Coordinating software releases
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62
In a multinational strategy,financial management is centralized while production and sales are decentralized.
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63
One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.
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64
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.
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65
List and describe four types of systems configurations used by international firms to fit their global strategies.
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66
The way to identify core business processes is to conduct a:

A)cost-benefit analysis.
B)work-flow analysis.
C)business process analysis.
D)feasibility analysis.
E)systems analysis.
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67
When developing a global system,bringing the opposition of local groups into the process of designing and implementing the solution without giving up control over the direction and nature of the change is called:

A)cooptation.
B)change management.
C)implementation.
D)advocacy.
E)cooperation.
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68
Which of the following is not one of the main benefits to implementing global systems?

A)Superior management and coordination
B)Vast improvements in operation
C)New economies of scale at production facilities
D)Reduced hardware and software costs
E)Optimization of the use of corporate funds
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69
Global systems allow fixed costs to be amortized over a much larger customer base.
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70
Describe the four main global strategies that form the basis for global firms' organizational structure.
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71
Success as a change agent depends on legitimacy,authority,and ability to involve users in the change design process.
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72
There are two primary global organization types: management centralized in the home country or distributed to foreign centers.
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73
Transnational centers of excellence do all of the following except:

A)perform initial identification and specification of business processes.
B)define information requirements.
C)perform business and systems analysis.
D)accomplish all design and testing.
E)implement the system.
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74
In a franchiser business strategy,each foreign unit uses the same systems developed by the firm regardless of their location.
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75
The chapter outlines four steps in developing an effective global system solution.Which of the following is not one of these steps?

A)Identify which local systems need to be replaced.
B)Identify the core systems to coordinate centrally.
C)Choose a developmental approach,incremental,evolutionary,or other.
D)Make the benefits clear.
E)Define the core business processes.
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76
Which of the following methods of encouraging local users to support global systems should be avoided as much as possible?

A)Permitting each country unit the opportunity to develop a transnational application first in its home territory and then throughout the world
B)Developing transnational centers of excellence
C)Requiring local units to agree on a short list of transnational systems
D)Using raw power
E)Involving users in the creation of the design without giving up control over the development of the project to parochial interests
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77
Which of the following is not one of the principal management challenges in developing global systems?

A)Encouraging local users to support global systems
B)Coordinating applications development
C)Defining an acceptable test plan
D)Agreeing on common user requirements
E)Introducing changes in business processes
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78
Which systems are worth sharing on a transnational basis,from a cost and feasibility point of view?

A)Only some core systems that support functions that are absolutely critical to the organization
B)Core systems and worthwhile provincial systems
C)Core systems and any financial systems that can be easily integrated with each other
D)Financial and accounting systems
E)Systems that support decentralized units
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79
Which of the following occurs as a firm moves from local option systems to regional and global systems?

A)Agency costs increase.
B)Coordination costs decrease.
C)Transaction costs increase.
D)Both transaction and agency costs increase.
E)All costs increase.
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80
In order to define centers of excellence in a global firm,you first need to identify:

A)functional areas.
B)core business processes.
C)SOPs.
D)core competencies.
E)international best practices.
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