Question 1

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

Accepted Answer

Value-added networks (VANs) have seen a decrease in use for many applications due to the rise of the Internet, which offers a more open, flexible, and cost-effective means of communication and data exchange.

Question 2

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

Accepted Answer

A GIS can be customized according to a company's size and business needs. It may not be one-size-fits-all and may require some degree of customization to cater to specific requirements. Therefore, the statement is incorrect.

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.

Accepted Answer

In a global structure, the headquarters maintains control over the key functions and strategies, while the subsidiaries follow the directives from the headquarters, focusing on efficiency and centralized decision-making rather than tailoring products to local markets.

Question 4

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

Accepted Answer

A Global Information System (GIS) is primarily defined by its geographical component, focusing on the capture, storage, manipulation, analysis, management, and presentation of spatial or geographic data, rather than customization and communication.

Question 5

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

Accepted Answer

Asynchronous transmission does not require both parties to be connected at the same time. Data is transmitted piece by piece with each piece having its own start and stop bits to indicate its beginning and end. The receiver can acknowledge receipt of the data and respond when it is able to do so, allowing for a more flexible and efficient communication process.

Question 6

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

Accepted Answer

As e-business becomes more prevalent, consumers have access to vast amounts of information and can easily compare products and prices, leading to increased competition among businesses.

Question 7

The Internet complicates communication and restricts opportunities for consumers.

Accepted Answer

The Internet actually facilitates communication and expands opportunities for consumers by providing access to vast amounts of information, enabling easier and faster communication, and offering a wider range of products and services from around the globe.

Question 8

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

Accepted Answer

Companies with a transnational structure often have increased efficiency in production costs because they can take advantage of lower labor costs, economies of scale, and local resources in each location.

Question 9

In a multinational structure, financial management is decentralized.

Accepted Answer

The answer of In a multinational structure, financial management is...

Question 10

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

Accepted Answer

Local hardware and software vendors provide their products and services to multinational companies, and these companies may be influenced by their recommendations and suggestions when selecting applications.

Question 11

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

Accepted Answer

While eliminating duplicate information systems can improve efficiency, it's not always necessary or beneficial in a global structure. Organizations may maintain certain duplicate systems to cater to local needs, comply with regional regulations, or ensure redundancy and resilience.

Question 12

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

Accepted Answer

An organization's structure determines the way in which information flows through the company, which in turn affects the architecture of the global information system (GIS). For example, a highly centralized organization may have a more tightly-controlled GIS architecture, while a decentralized organization may require a more flexible and distributed GIS.

Question 13

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

Accepted Answer

Operational support provided by a Global Information System (GIS) typically involves day-to-day activities and short-term decision-making, rather than broad and long-term goals.

Question 14

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

Accepted Answer

Time zones make it challenging to coordinate and synchronize activities across regions and countries, especially when dealing with real-time data. This can impact the performance and functionality of a GIS.

Question 15

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

Accepted Answer

While e-business has increased direct communication between buyers and sellers, intermediaries still play a role in areas such as logistics, payment processing, and marketing. Additionally, some buyers may still prefer to use intermediaries for purchasing decisions.

Question 16

Currency conversion is a challenge in global database development.

Accepted Answer

Currency conversion can be complicated due to fluctuating exchange rates, varying currencies, and differing decimal points. It is important for global database developers to ensure accurate and up-to-date currency conversions in order to avoid errors and inconsistencies in data.

Question 17

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

Accepted Answer

A global information system (GIS) can provide real-time information on production schedules, allowing a company to manage resources and respond quickly to changes in demand or supply chains.

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.

Accepted Answer

High coordination in a GIS gives flexibility in responding to competitors in different markets. It allows for the different branches of a company to collaborate and share data efficiently, leading to better decision-making and adaptation to new markets. This can be a competitive advantage over companies with less coordination.

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.

Accepted Answer

In an international organization, personnel are often exchanged between locations to encourage joint development of applications across different departments such as marketing, finance, and production. This helps to ensure that the information systems used by the organization are consistent across different regions and are optimized to meet the needs of local users.

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.

Accepted Answer

Lack of standardization can result in inconsistencies in data formats, structures, and definitions, making it difficult to integrate data from different sources and effectively share information resources across borders. Standardization promotes interoperability, compatibility, and consistency, enabling smooth data exchange and collaboration in a global context.

Quiz 9: Global Information Systems