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Chapter 15

Citicorp, Sony, and Ford are attempting to make a transition to which type of business organizational structure?

domestic exporter

multinational

transnational

franchiser

transnational
Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information?

Free Trade Agreement

European Union Data Protection Directive

United Nations Privacy Act

European Transborder Data Flow Act

European Union Data Protection Directive
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.

domestic exporter

multinational

franchiser

transnational

transnational
Accounting practices can vary significantly from country to country.

True

False

True
In decentralized systems

development occurs at the home base and operations are handed over to autonomous units in foreign locations.

each foreign unit designs its own unique solutions and systems.

systems development and operations occur in an integrated and coordinated fashion across all units.

foreign units design the solutions and systems used at the domestic home base.

each foreign unit designs its own unique solutions and systems.
Franchise companies have typically had ________ systems.

duplicated

centralized

networked

decentralized

duplicated
VPNs

use the public Internet for communications.

may not be able to support large numbers of remote users, due to the variable traffic on the Internet.

provide many of the same services as private networks.

all of these.

all of these.
Which of the following is NOT one of the principle problems of international networks?

network capacity

poor quality of international service

network standards

regulatory constraints

network standards
In terms of global business strategy and structure, a franchise company will use a policy of

centralized production, accounting, marketing, human resources, with strategic management.

dispersed production, accounting, human resources, with centralized strategic management, and marketing.

dispersed production and marketing, with centralized accounting, human resources and strategic management.

dispersed production, marketing, and human resources, with centralized strategic management and finance/accounting

dispersed production, marketing, and human resources, with centralized strategic management and finance/accounting.
At the cultural level, differences among cultures produce differences in social expectations, politics, and legal rules.

True

False

True
General cultural factors driving global business are

global communication and transportation technologies, a global knowledge base, and global social norms

the development of global markets, political stability, and a global workforce.

the rise of the global workforce, political stability, and a global knowledge base.

the rise of a global workforce, global economies of scale, and global production and operations.

global communication and transportation technologies, a global knowledge base, and global social norms.
In centralized systems

development occurs at the home base and operations are handed over to autonomous units in foreign locations.

each foreign unit designs its own unique solutions and systems.

systems development and operations occur in an integrated and coordinated fashion across all units.

systems development and operations occur totally at the domestic home base.

systems development and operations occur totally at the domestic home base.
According to the chapter case, what was the chief challenge facing General Motors regarding its information systems?

incompatible legacy systems

resistance from managers

resistance from rank-and-file employees

lack of globalization

incompatible legacy systems
Two of the management challenges in developing global systems are listed in your text as

(1) managing the privacy concerns of different countries and (2) coordinating applications development.

(1) creating a financial structure that will operate internationally and (2) managing the privacy concerns of different countries.

(1) agreeing on common user requirements and (2) managing the privacy concerns of different countries.

(1) coordinating software releases and (2) introducing changes in business processes.

(1) coordinating software releases and (2) introducing changes in business processes.
One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.

True

False

True
Effective networked systems must have a

powerful telecommunications backbone.

culture of shared applications development.

shared management culture that crosses cultural barriers.

both culture of shared applications development and shared management culture that crosses cultural barriers

powerful telecommunications backbone, culture of shared applications development, and shared management culture that crosses cultural barriers

none of these

powerful telecommunications backbone, culture of shared applications development, and shared management culture that crosses cultural barriers
A powerful strategic advantage for a globalized firm is lowered cost factors in production.

True

False

True
The major dimensions of international systems architecture include each of the following EXCEPT

the global environment.

corporate global strategy.

technology platform.

transborder data flows.

transborder data flows.
General challenges and obstacles to global business systems are typified by

different technology standards, shortages of skilled consultants, and social expectations.

brand-name expectations, language differences, and commercial regulations.

different work hours, transborder data and privacy laws, and different technology standards.

different communications standards, language differences, and network reliability.

brand-name expectations, language differences, and commercial regulations.
Software localization is the process of

translating a user interface into a second language.

converting software programming to run on a different platform.

converting software to operate in a second language and with local conventions.

modifying software so that it can be adopted in other countries without engineering changes.

converting software to operate in a second language and with local conventions.
In terms of global business strategy and structure, a domestic exporter will use a policy of

some dispersed sales, with centralized production, accounting, human resources, and strategic management.

centralized production and accounting with decentralized marketing and human resources.

centralized production, accounting, marketing, and human resources.

dispersed production and marketing, with centralized accounting, human resources and strategic management.

some dispersed sales, with centralized production, accounting, human resources, and strategic management.
As a firm moves from local option systems to regional and global systems

agency costs increase.

coordination costs decrease

transaction costs increase.

both transaction and agency costs increase.

agency costs increase.
The collapse of the Eastern block has speeded the growth of a world culture.

True

False

True
The way to identify core business processes is to conduct a

cost-benefit analysis.

work-flow analysis.

business process analysis.

feasibility analysis.

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

maintain a master database at their head offices.

develop a master system that meets the standards of all the countries concerned.

use microwave satellite transmission to move data.

develop separate systems within each country.

develop separate systems within each country.
Which of the following is NOT one of the main benefits to implementing global systems?

superior management and coordination

vast improvements in operation

new economies of scale at production facilities

reduced hardware costs

reduced hardware costs
The European Union Data Protection Directive restricts the flow of any information to countries that do not meet strict European laws on personal information.

True

False

True
European countries have very strict laws concerning transborder data flows and privacy.

True

False

True
Before developing a corporate strategy and structure for globalization, a firm should determine the appropriate technology infrastructure.

True

False

False
A force in the environment to which businesses must respond and that influences the direction of the business is called a business

driver.

threat.

process.

matrix.

driver

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