Cha 15

15-001
The growth of international trade has radically altered domestic economies around
the globe.
Student Response Value Correct Answer Feedback
A. True 100%
B. False
15-002
Before developing a corporate strategy and structure for globalization, a firm
should determine the appropriate technology infrastructure.
A. True 0%
B. False
15-003
Global business drivers can be divided into two groups: general cultural factors
and specific business factors.

Student Value Correct Feedback
Respons Answer
A. True 100%
B. False
15-005
The growth of powerful communications technologies and the emergence of world
cultures create the condition for global markets.

A. True 100%
B. False
15-006
Micromarketing describes the direct marketing of products to individuals rather
than groups.

B. False 100%
15-007
A powerful strategic advantage for a globalized firm is lowered cost factors in
production.
Student Valu Correct Feedback
Respons e Answer
e
Respons e Answer
B. False
15-008
Particularism is a concept based on accepting a shared global culture and the
penetration of domestic markets by foreign goods and services.

Respons Answer
B. False 100%
15-009
At the cultural level, differences among cultures produce differences in social
expectations, politics, and legal rules.
Student Response Value Corre Feedback

ct
Answ
er
B. False
15-010
Globalization means that companies can be less concerned with the laws governing
the movement of information.
Student Response Value Correc Feedback

Student Response Value Correc Feedback
Answe
B. False 100%
15-011
European countries have very strict laws concerning transborder data flows and
privacy.
Respons Answer
A. True 100%
B. False
15-012
The European Union Data Protection Directive restricts the flow of any
information to countries that do not meet strict European laws on personal
information.
A. True 100%
B. False
15-013
To avoid the cost and uncertainty of moving information across national
boundaries, most multinational firms have developed information systems within
each European country.
A. True 100%
B. False
15-014
With the growth of the Internet and reliable phone networks, skilled consultants are
readily available to companies operating in global markets.
Respons Answer
A. True
B. False 100%
15-015
Accounting practices can vary significantly from country to country.
Student Response Value Correct Answer
A. True 100%
B. False
15-016
In international companies, English has become a kind of standard business
language.

Respons e Answer
B. False
15-017
In a multinational strategy, financial management is centralized while production
and sales are decentralized.

Respons e Answer
B. False 0%
15-018
Global systems allow fixed costs to be amortized over a much smaller customer
base.
A. True
B. False 100%
15-019
One major telecommunications challenge in an international setting is making data

flow seamlessly across networks shaped by disparate national standards.
A. True
B. False 0%
15-021
A force in the environment to which businesses must respond and that influences
the direction of the business is called a business
A. driver. 100%
B. threat.
C. process.
D. matrix.
15-022
The major dimensions of international systems architecture include each of the
following EXCEPT
Student Response Value Correct Feedback
Answer
A. the global environment.
B. corporate global strategy.
C. technology platform.
D. transborder data flows. 100%

15-023
General cultural factors driving global business are
Answer
A. global communication and 100%
transportation technologies, a global
knowledge base, and global social
norms.
B. the development of global markets,
political stability, and a global

Answer
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.
15-024
Global coordination of all of the major business functions permits the location of
business activity according to
Answer
A. social norms and values.
B. comparative advantage. 100%
C. competitive threat.
D. knowledge base.
15-025
Marketing to very small geographic and social units is called:
Answer
A. targeted marketing.
B. macromarketing.
C. personalization.
D. micromarketing. 100%
15-026
Making judgments and taking action on the basis of narrow or personal
characteristics is referred to as:
A. localization.
B. cooptation.
C. particularism. 100%
D. prejudicial.
15-027
Which of the following restricts the flow of personal information to countries that do
not meet strict European information laws on personal information?
Student Response Valu Correc Feedback
e t
Answe
A. Free Trade Agreement
B. European Union Data Protection 100%

Student Response Valu Correc Feedback
e t
Answe
Directive
C. United Nations Privacy Act
D. European Transborder Data Flow
Act
15-028
General challenges and obstacles to global business systems are typified by
Answer
A. different technology standards, shortages
of skilled consultants, and social
expectations.
B. brand-name expectations, language 100%
differences, and commercial regulations.
C. different work hours, transborder data
and privacy laws, and different

Answer
technology standards.
D. different communications standards,
language differences, and network
reliability.
15-030
To avoid the cost and uncertainty of moving information across national
boundaries, most multinational firms
Student Response Value Correc Feedbac
t k
Answer
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.
t k
Answer
D. develop separate systems within each country. 100%
15-031
German companies
Answer
A. do not recognize the profit until the
project is completely finished and they
have been paid.
B. recognize profits before the project is 0%
finished.
C. recognize profits when the project is
initialized.
D. do not recognize the profits until they
have been formally audited.

15-032
Most large companies with overseas operations have inherited:
Student Response V Correct Answer
al
ue
A. recently built technology platforms for
international systems.
B. batch-oriented reporting from independent foreign
divisions to corporate headquarters.

al
ue
C. transaction-oriented reporting based at the home
office for overseas business.
D. global marketing systems developed domestically. 0
%
15-033
In terms of global business strategy and structure, a domestic exporter will use a
policy of
Student Response Va Correct Answer
lu
A. some dispersed sales, with centralized 10
production, accounting, human resources, and 0
strategic management. %
lu
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.
15-034
In terms of global business strategy, Caterpillar Corporation and other heavy
capital equipment manufacturers fall into which category of firm?
Student Response Value Correct Feedbac
Answer k
A. domestic exporter 100%
B. multinational
C. franchiser
D. transnational
15-035
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 100%
15-036
In terms of global business strategy and structure, a multinational company will
use a policy of
t k
Answer
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.

t k
Answer
D. dispersed production and marketing, with 100%
centralized accounting and strategic
management.
15-037
In terms of global business strategy, Chrysler and Intel fall into which category of
firm?
t k
Answer
B. multinational 100%
C. franchiser
D. transnational
15-038
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, 100%
marketing, and human
resources, with centralized
strategic management and
finance/accounting.
15-039
In terms of global business strategy, KFC falls into which category of firm?
Answer
B. multinational
C. franchiser 100%
D. transnational
15-040
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.
Answer
B. multinational
C. franchiser
D. transnational 100%
15-041
Citicorp, Sony, and Ford are attempting to make a transition to which type of
business organizational structure?
ct
Answ
er
B. multinational 0%
C. transnational
ct
Answ
er
D. franchiser
15-042
In centralized systems

Answer
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 100%
totally at the domestic home base.
. 15-043
In duplicated systems
lue
A. development occurs at the home base 10
and operations are handed over to 0
autonomous units in foreign locations. %

lue
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.
15-044
In networked systems
Answer
A. development occurs at the home base and 0%
operations are handed over to autonomous
units in foreign locations.
C. systems development and operations occur
in an integrated and coordinated fashion
across all units.

Answer
D. foreign units design the solutions and
systems used at the domestic home base.
15-045
In decentralized systems
Answer
Answer
B. each foreign unit designs its own 100%
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.
15-046
Domestic exporters typically have highly ________ systems.
A. duplicated
B. centralized 100%
C. networked
D. decentralized
15-047
Multinational companies tend to have ________ systems.
A. duplicated
B. centralized
C. networked
D. decentralized 100%
15-048
Franchise companies have typically had ________ systems.
Answer
A. duplicated 100%
B. centralized
C. networked
D. decentralized
15-049
Transnational companies have tended to use a ________ systems configuration.
Student Value Correct Answer Feedback
Response
A. duplicated
B. centralized
C. networked 100%
D. decentralized
15-050
The network systems structure is the most visible in ________ services.
A. production
B. financial 100%
C. marketing
D. software design
15-051
Effective networked systems must have a
Student Response Valu Correct Answer

B. culture of shared applications development.
C. shared management culture that crosses
cultural barriers.
D. both culture of shared applications
development and shared management culture
that crosses cultural barriers
E. powerful telecommunications backbone,
culture of shared applications development,
and shared management culture that crosses
cultural barriers
F. none of these
15-052
Two of the management challenges in developing global systems are listed in your
text as
lu
lu
B. (1) creating a financial structure that will
operate internationally and (2) managing the
privacy concerns of different countries.
C. (1) agreeing on common user requirements and
(2) managing the privacy concerns of different
countries.
D. (1) coordinating software releases and (2) 10
introducing changes in business processes. 0
%
15-053
Which of the following is NOT one of the principle management challenges in
developing global systems?
A. encouraging local users to support
global systems
B. coordinating applications
development
C. defining an acceptable test plan 100%
D. agreeing on common user

requirements
15-054
Logically related tasks to produce specific business results best defines
A. information systems. 0%
B. business processes.
C. SOPs.
D. core competencies.
15-055
The way to identify core business processes is to conduct a

A. cost-benefit analysis. 0%
B. work-flow analysis.
C. business process analysis.
D. feasibility analysis.
15-056
As a firm moves from local option systems to regional and global systems
Answer
A. agency costs increase. 100%
B. coordination costs decrease.
C. transaction costs increase.
D. both transaction and agency costs
increase.
15-057
Which systems are worth sharing on a transnational basis, from a cost and
feasibility point of view?
Answer
A. only systems that support functions that 100%
are absolutely critical to the
organization
B. core systems and worthwhile provincial
systems
C. core systems and any financial systems

Answer
that can be easily integrated with each
other
D. financial and accounting systems
15-058
Based on your reading of the chapter, why should companies avoid creating an all-
encompassing, new global system when moving towards global operations?
Answer
A. These may fail due to
lack of visibility.
B. It is difficult to quantify
and explain the benefits
of information systems
that are that large.
C. "Grand design" 0%
approaches typically fail
to identify centers of
excellence.
Answer
D. Opposition is
strengthened because of
requirements for huge
resources.
15-059
The ability of global systems to optimize the use of corporate funds over a much
larger capital base means that

Answer
B. capital costs can be accounted or
spread over a larger base of
constituents.
C. costs can be amortized over a larger 100%
customer base.
D. value chains can be synchronized more
effectively.
15-060
Which of the following is NOT one of the main benefits to implementing global
systems?
A. superior management and 0%
coordination
B. vast improvements in operation
C. new economies of scale at
production facilities
D. reduced hardware costs
15-061
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. 100%
B. change management.
C. implementation.
D. advocacy.
15-062
In relation to global systems building, the Internet
al
ue
A. allows the seamless flow of information

al
ue
B. affords local groups stable broadband access.
C. has reduced some networking problems.
D. all of these. 0
15-063
A critical necessity for ensuring the integration of local systems into a global
system is
A. adherence to data and technical
standards.
B. use of standard hardware at the
local level.
C. use of standard user software at the
local level.
D. all of these. 0%
15-064
VPNs

Answer
B. may not be able to support large
numbers of remote users, due to the
variable traffic on the Internet.
C. provide many of the same services as
private networks.
D. all of these. 100%
15-065
Which of the following is NOT one of the principle problems of international
networks?
Answer
A. network capacity 0%
B. poor quality of international service
C. network standards
D. regulatory constraints
15-066
Which types of systems are widely used by manufacturing and distribution firms to
connect to suppliers on a global basis?
A. TPS systems
B. EDI systems 100%
C. CRM systems
D. none of these
. 15-067
A global firm can develop transnational centers of excellence as an effective
technique to
lu
A. ensure connectivity between
regional systems.
B. encourage user support of global
systems.
C. effectively identify global business 10
processes. 0
%
lu
D. develop a merit-based hierarchy
among regional groups.

15-068
Sixty-eight percent of the world's mobile phone subscriptions are in
Answer
A. developing countries. 100%
B. Europe.
C. the United States.

Answer
D. the United States and Canada.
15-069
Software localization is the process of

Answer
B. converting software programming to run
on a different platform.
C. converting software to operate in a 100%
second language and with local
conventions.
D. modifying software so that it can be
adopted in other countries without
engineering changes.
1. Micromarketing descr
Micromarketing describes the direct marketing of products to individuals rather
than groups.
Student Response Correct Answer
True False
Score: 0/4
2. The major dimensions

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.
Score: 4/4
3. Accounting practices
Accounting practices can vary significantly from country to country.
True True
Score: 4/4
4. Transnational compan
Transnational companies have tended to use a ________ systems configuration.
A. duplicated
B. centralized
C. networked
D. decentralized
Score: 4/4
5. Global systems allow
Global systems allow fixed costs to be amortized over a much smaller customer
base.
False False
Score: 4/4
6. VPNs
VPNs
A. use the public Internet for communications.
B. may not be able to support large numbers of remote

users, due to the variable traffic on the Internet.
C. provide many of the same services as private
networks.
D. all of the above.
Score: 4/4
7. Which of the followi
Which of the following restricts the flow of personal information to countries

A. Free Trade Agreement
B. European Union Data Protection Directive
C. United Nations Privacy Act
D. European Transborder Data Flow Act
Score: 4/4
8. Two of the managemen
Two of the management challenges in developing global systems are listed in
your text as
A. (1) managing the privacy concerns of different
countries and (2) coordinating applications
development.
B. (1) creating a financial structure that will operate
internationally and (2) managing the privacy concerns
of different countries.
C. (1) agreeing on common user requirements and (2)
managing the privacy concerns of different countries.
D. (1) coordinating software releases and (2) introducing
changes in business processes.
Score: 0/4
9. In duplicated system
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.

Score: 4/4
10 Global business driv
Global business drivers can be divided into two groups: general cultural factors
and specific business factors.
True True
Score: 4/4
11. Which systems are wo
Which systems are worth sharing on a transnational basis, from a cost and
feasibility point of view?
A. only 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
Score: 0/4
12 With the growth of t
.
With the growth of the Internet and reliable phone networks, skilled consultants
are readily available to companies operating in global markets.
True False
Score: 0/4
13 Logically related ta
.
Logically related tasks to produce specific business results best defines
A. information systems.
B. business processes.
C. SOPs.
D. core competencies.
Score: 4/4
14 In international com
In international companies, English has become a kind of standard business
language.
True True
Score: 4/4
15 Franchise companies
Franchise companies have typically had ________ systems.
A. duplicated
B. centralized
C. networked
D. decentralized
Score: 4/4
16 In terms of global b 6
In terms of global business strategy, KFC falls into which category of firm?
B. multinational
C. franchiser
D. transnational
Score: 4/4
17 In terms of global b
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.
Score: 0/4
18 A global firm can de
.
A global firm can develop transnational centers of excellence as an effective
technique to
A. ensure connectivity between regional systems.
B. encourage user support of global systems.
C. effectively identify global business processes.
D. develop a merit-based hierarchy among regional
groups.
Score: 4/4
19 German companies
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.
Score: 4/4
20 In centralized syste
.
In centralized systems
locations.
systems.

D. systems development and operations occur totally at
Score: 4/4
21 In decentralized sys
In decentralized systems
locations.
systems.
D. foreign units design the solutions and systems used at
Score: 0/4
22 The growth of powerf
The growth of powerful communications technologies and the emergence of
world cultures create the condition for global markets.
True True
Score: 4/4
23 Based on your readin
Based on your reading of the chapter, why should companies avoid creating an
all-encompassing, new global system when moving towards global operations?
A. These may fail due to lack of visibility.
B. It is difficult to quantify and explain the benefits of

information systems that are that large.
C. "Grand design" approaches typically fail to identify
centers of excellence.
D. Opposition is strengthened because of requirements
for huge resources.
Score: 4/4
24 The way to identify
.
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.
Score: 4/4
25 Software localizatio
Software localization is the process of
A. translating a user interface into a second language.
B. converting software programming to run on a different
platform.
C. converting software to operate in a second language
and with local conventions.
D. modifying software so that it can be adopted in other
countries without engineering changes.
Score: 4/4

Cha 15

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15-001

Student Response Value Correct Answer Feedback

should determine the appropriate technology infrastructure.

Student Response Value Correct Answer Feedback

and specific business factors.

The growth of powerful communications technologies and the emergence of world

cultures create the condition for global markets.

Micromarketing describes the direct marketing of products to individuals rather

Student Response Value Correct Answer Feedback

A powerful strategic advantage for a globalized firm is lowered cost factors in

Student Valu Correct Feedback

Particularism is a concept based on accepting a shared global culture and the

penetration of domestic markets by foreign goods and services.

Student Value Correct Feedback

At the cultural level, differences among cultures produce differences in social

expectations, politics, and legal rules.

Student Response Value Corre Feedback

the movement of information.

Student Response Value Correc Feedback

information to countries that do not meet strict European laws on personal

Student Response Value Correct Answer Feedback

boundaries, most multinational firms have developed information systems within

each European country.

Student Response Value Correct Answer Feedback

Student Value Correct Feedback

Student Response Value Correct Answer

In international companies, English has become a kind of standard business

Student Valu Correct Feedback

In a multinational strategy, financial management is centralized while production

and sales are decentralized.

Student Valu Correct Feedback

One major telecommunications challenge in an international setting is making data

Student Response Value Correct Answer Feedback

Student Response Value Correct Answer Feedback

Student Response Value Correct Feedback

A. the global environment.

B. corporate global strategy.

D. transborder data flows. 100%

General cultural factors driving global business are

Student Response Value Correct Feedback

A. global communication and 100%

transportation technologies, a global

knowledge base, and global social

B. the development of global markets,

political stability, and a global

C. the rise of the global workforce,

political stability, and a global

D. the rise of a global workforce, global

economies of scale, and global

production and operations.

business activity according to

Student Response Value Correct Feedback

A. social norms and values.

B. comparative advantage. 100%

Marketing to very small geographic and social units is called:

Student Response Value Correct Feedback

Making judgments and taking action on the basis of narrow or personal

characteristics is referred to as:

Student Response Value Correct Answer Feedback

not meet strict European information laws on personal information?

Student Response Valu Correc Feedback

A. Free Trade Agreement