There are two global organization options: management is either centralized in the home country or distributed to local, foreign centers.
The first step in establishing a corporate strategy and structure for globalization is to determine the appropriate technology platforms.
Global business drivers can be divided into two groups: general cultural factors and specific business factors.
The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets.
The collapse of the Eastern block has speeded the growth of a world culture.
Micromarketing describes the direct marketing of products to individuals rather than groups.
A powerful strategic advantage for a globalized firm is lowered cost factors in production.
Particularism is a concept based on accepting a shared global culture and the penetration of domestic markets by foreign goods and services.
At the cultural level, differences among cultures produce differences in social expectations, politics, and legal rules.
Globalization means that companies can be less concerned with the law governing the movement of information.
European countries have very strict laws concerning trans-border data flows and privacy.
The European Union Data Protection Directive restricts the flow of any information to countries that do not meet strict European laws on personal information.
To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms have developed information systems within each European country.
With the growth of the Internet and reliable phone networks, skilled consultants are readily available to companies operating in global markets.
Accounting practices can vary significantly from country to country.
In international companies, English has become a kind of standard business language.
In a multinational strategy, financial management is centralized while production and sales are decentralized.
Global systems allow fixed costs to be amortized over a much smaller customer base.
One major telecommunications challenge in an international setting is making data flow seamlessly across networks shaped by disparate national standards.
Private networks may not provide the same level of quick and predictable response as VPNs.
A force in the environment to which businesses must respond and that influences the direction of the business is called a business ______.
The major dimensions of international systems architecture include each of the following EXCEPT _____.
D) transborder data flows
General factors driving global business are ______.
A) global communication and transportation technologies, a global knowledge base, and global social norms.
Global coordination of all of the major business functions permits the location of business activity according to _____.
B) comparative advantage
Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?
D) defining the global environment
Making judgments and taking action on the basis of narrow or personal characteristics is _____.
Which of the following restricts the flow of personal information to countries that do not meet strict European information laws on personal information?
B) European Union Data Protection Directive
General challenges and obstacles to global business systems are typified by ______.
B) brand-name expectations, language differences, and commercial regulations
Which of the following is NOT a specific challenge to global business system?
B) language differences
To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms ____.
D) develop separate systems within each country.
German companies ______.
A) do not recognize the profit until the project is completely finished and they have been paid.
Most large companies with overseas operations have inherited ______.
B) batch-oriented reporting from independent foreign divisions to corporate headquarters.
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.
Most companies pursuing a global strategy begin as _____.
A) domestic exporters
A company that controls finances in the home country and decentralizes production, sales, and marketing operations to other countries is using a ______ strategy.
In terms of global business strategy and structure, a multinational company will use a policy of _____.
D) dispersed production and marketing, with centralized accounting and strategic management.
Which of the following is NOT one of the three kinds of organizational governance used by global companies?
In terms of global business strategy and structure, a franchise company will use a policy of ______.
D) dispersed production, marketing, human resources, with centralized strategic management and finance/accounting.
Which of the following is NOT one of the primary types of system configuration discussed in the chapter?
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.
Of the following, which is NOT one of the three central principles recommended in this chapter for a firm organizing itself for international business?
C) Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.
In centralized systems _____.
D) systems development and operations occur totally at the domestic home base.
In duplicated systems ______.
A) development occurs at the home base and operations are handed over to autonomous units in foreign locations.
In network systems _____.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
In decentralized systems ______.
B) each foreign unit designs its own unique solutions and systems.
Domestic exporters typically have highly ______ systems.
Multinational companies tend to have _____ systems.
Franchise companies have typically had ____ systems.
Transnational companies have tended to use a _____ systems configuration.
The network systems structure is the most visible in ____ services.
Effective networked systems must have a _____.
E) A, B, and C
Two of the management challenges in developing global systems are listed in your text as _____.
D) (1) coordinating software releases and (2) introducing changes in business processes.
Which of the following is NOT one of the principal management challenges in developing global systems?
C) defining an acceptable test plan.
Logically related tasks to produce specific business results best defines _____.
B) business processes
The way to identify core business processes is to conduct a _____.
C) business process analysis
As a firm moves from local option systems to regional and global systems ____.
A) agency costs increase
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.
Based on your reading of the chapter, why should companies avoid creating an all-encompasing, new global system when moving towards global operations?
D) Opposition is strengthened because of requirements for huge resources.
The ability of global system when moving towards global operations?
C) costs can be amortized over a larger customer base.
Which of the following is NOT one of the main benefits to implementing global systems?
D) reduced hardware costs
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 global firm can develop transnational centers of excellence as an effective technique to ______.
C) effectively identify global business processes.
In relation to global systems building, the Internet ____.
C) has reduced some networking problems
A critical necessity for ensuring the integration of local systems into a global system is ____.
A) adherence to data and technical standards.
D) All of the above
Which of the following is NOT one of the principal problems of international networks?
C) network standards
68 percent of the world’s mobile phone subscriptions are in _____.
A) developing countries
Software localization is he process of ______.
C) converting software to operate in a second language and with local conventions.
Which types of systems are widely used by manufacturing and distribution firms to connect to suppliers on a global basis?
B) EDI systems
The chapter outlines three steps in developing an effective global system solution. Which of the following is NOT one of these steps?
A) identify outdated legacy systems to be replaced.
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