Exam
Name___________________________________
1. The first step in establishing a corporate strategy and structure for globalization is to determine the
appropriate technology platform.
2. Global business drivers can be divided into two groups: general cultural factors and specific business factors.
3. The growth of powerful communications technologies and the emergence of world cultures create the
condition for global markets.
4. The collapse of the Eastern block has speeded the growth of a world culture.
5. Micromarketing describes the direct marketing of products to individuals rather than groups.
6. A powerful strategic advantage for a globalized firm is lowered cost factors in production.
7. Particularism is a concept based on accepting a shared global culture and the penetration of domestic
markets by foreign goods and services.
8. Developing international networks has few problems today because of the global acceptance of Internet
standards.
9. In a transnational business strategy, all of the regional units participate and coordinate over all activities,
from production to sales.
10. European countries have very strict laws concerning transborder data flows and privacy.
11. In a duplicated systems building strategy, each foreign unit designs its own solutions and systems.
12. To avoid the cost and uncertainty of moving information across national boundaries, most multinational
firms have developed information systems within each European country.
13. With the growth of the Internet and reliable phone networks, skilled consultants are readily available to
companies operating in global markets.
14. Accounting practices can vary significantly from country to country.
15. In international companies, English has become a kind of standard business language.
16. There are two primary global organization types: management centralized in the home country or
distributed to foreign centers.
17. In a multinational strategy, financial management is centralized while production and sales are
decentralized.
18. Global systems allow fixed costs to be amortized over a much smaller customer base.
19. One major telecommunications challenge in an international setting is making data flow seamlessly across
networks shaped by disparate national standards.
20. Private networks may not provide the same level of quick and predictable response as VPNs.
21. A force in the environment to which businesses must respond and that influences the direction of the
business is called a business
A) driver.
B) matrix.
C) process.
D) threat.
22. The major dimensions of international systems architecture include each of the following except
A) transborder data flows.
B) corporate global strategy.
C) technology platform.
D) the global environment.
23. General cultural factors driving global business are
A) the rise of the global workforce, political stability, and a global knowledge base.
B) global communication and transportation technologies, a global knowledge base, and global social
norms.
C) the development of global markets, political stability, and a global workforce.
D) the rise of a global workforce, global economies of scale, and global production and operations.
24. Global coordination of all of the major business functions permits the location of business activity according
to
A) knowledge base.
B) comparative advantage.
C) competitive threat.
D) social norms and values.
25. Making judgments and taking action on the basis of narrow or personal characteristics is referred to as
A) localization.
B) prejudicial.
C) particularism.
D) cooptation.
26. In a multinational business strategy, the ________ business function is decentralized, dispersed to foreign
units.
A) strategic management
B) human resources
C) production
D) finance/accounting
27. All of the following present challenges to developing a global business except
A) exchange rates.
B) foreign accounting practices.
C) language differences.
D) production costs.
28. Which of the following is not a specific challenge to global business system?
A) different telecommunication standards
B) shortages of skilled consultants
C) language differences
D) different data transfer speeds
29. To avoid the cost and uncertainty of moving information across national boundaries, most multinational
firms
A) use microwave satellite transmission to move data.
B) develop separate systems within each country.
C) maintain a master database at their head offices.
D) develop a master system that meets the standards of all the countries concerned.
30. German companies
A) do not recognize the profit until the project is completely finished and they have been paid.
B) recognize profits when the project is initialized.
C) do not recognize the profits until they have been formally audited.
D) recognize profits before the project is finished.
31. Most large companies with overseas operations have inherited
A) global marketing systems developed domestically.
B) transaction–oriented reporting based at the home office for overseas business.
C) batch–oriented reporting from independent foreign divisions to corporate headquarters.
D) recently built technology platforms for international systems.
32. In terms of global business strategy and structure, a domestic exporter will use a policy of
A) centralized production and accounting with decentralized marketing and human resources.
B) centralized production, accounting, marketing, and human resources.
C) some dispersed sales, with centralized production, accounting, human resources, and strategic
management.
D) dispersed production and marketing, with centralized accounting, human resources and strategic
management.
33. Which of the following is not one of the main organizational issues facing firms who are seeking to globalize?
A) organizing the global business structure
B) defining the global environment
C) organizing the systems management
D) choosing a global strategy
34. Most companies pursuing a global strategy begin as
A) franchisers.
B) domestic exporters.
C) transnationals.
D) multinationals.
35. 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) multinational
C) transnational
D) franchising
36. In terms of global business strategy and structure, a multinational company will use a policy of
A) dispersed production, accounting, human resources, with centralized strategic management, and
marketing.
B) centralized production, accounting, marketing, human resources, with strategic management.
C) dispersed production and marketing, with centralized accounting and strategic management.
D) mixed sales and marketing, with centralized production, accounting, human resources, and strategic
management.
37. Which of the following is not one of the three kinds of organizational governance used by global companies?
A) localized
B) decentralized
C) centralized
D) coordinated
38. In terms of global business strategy and structure, a franchise company will use a policy of
A) dispersed production and marketing, with centralized accounting, human resources and strategic
management.
B) dispersed production, accounting, human resources, with centralized strategic management, and
marketing.
C) centralized production, accounting, marketing, human resources, with strategic management.
D) dispersed production, marketing, and human resources, with centralized strategic management and
finance/accounting.
39. Which of the following is not one of the primary types of system configuration discussed in the chapter?
A) decentralized
B) duplicated
C) networked
D) coordinated
40. 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) franchiser
B) multinational
C) domestic exporter
D) transnational
41. In centralized systems
A) systems development and operations occur totally at the domestic home base.
B) systems development and operations occur in an integrated and coordinated fashion across all units.
C) development occurs at the home base and operations are handed over to autonomous units in foreign
locations.
D) each foreign unit designs its own unique solutions and systems.
42. In duplicated systems
A) systems development and operations occur in an integrated and coordinated fashion across all units.
B) foreign units design the solutions and systems used at the domestic home base.
C) each foreign unit designs its own unique solutions and systems.
D) development occurs at the home base and operations are handed over to autonomous units in foreign
locations.
43. In decentralized systems
A) development occurs at the home base and operations are handed over to autonomous units in foreign
locations.
B) foreign units design the solutions and systems used at the domestic home base.
C) systems development and operations occur in an integrated and coordinated fashion across all units.
D) each foreign unit designs its own unique solutions and systems.
44. In networked systems
A) each foreign unit designs its own unique solutions and systems.
B) development occurs at the home base and 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.
D) foreign units design the solutions and systems used at the domestic home base.
45. Domestic exporters typically have highly ________ systems.
A) duplicated
B) centralized
C) networked
D) decentralized
46. Multinational companies tend to have ________ systems.
A) duplicated
B) centralized
C) networked
D) decentralized
47. Franchise companies have typically had ________ systems.
A) duplicated
B) centralized
C) networked
D) decentralized
48. Transnational companies have tended to use a ________ systems configuration.
A) duplicated
B) centralized
C) networked
D) decentralized
49. The network systems structure is the most visible in ________ services.
A) marketing
B) software design
C) financial
D) production
50. Effective networked systems must have a
A) powerful telecommunications backbone.
B) culture of shared applications development.
C) shared management culture that crosses cultural barriers.
D) both B and C.
E) A, B, and C.
F) none of the above.
51. Of the following, which is not one of the three central principles recommended in this chapter for a firm
organizing itself for international business?
A) Establish a single office responsible for international systems and a global CIO position.
B) Organize value–adding activities along lines of comparative advantage.
C) Develop and operate systems units at each level of corporate activity regional, national, and
international.
D) Disperse production and marketing to regional centers and establish a single center for world
headquarters and strategic management.
52. In cooptation
A) opponents to a planned global system are brought into the process of designing and implementing the
solution.
B) the systems used on the company’s home country are modified to communicate with the systems of
foreign units so that each unit can retain their unique business processes.
C) the new global system replaces all unit systems, including systems in the home territory.
D) the systems of specific foreign units are chosen to duplicate for use by other units.
53. Which of the following is not one of the principle management challenges in developing global systems?
A) defining an acceptable test plan
B) coordinating applications development
C) agreeing on common user requirements
D) encouraging local users to support global systems
54. As a firm moves from local option systems to regional and global systems
A) agency costs increase.
B) transaction costs increase.
C) coordination costs decrease.
D) both transaction and agency costs increase.
55. 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) financial and accounting systems
D) core systems and any financial systems that can be easily integrated with each other
56. The chapter outlines three steps in developing an effective global system solution. Which of the following is
not one of these steps?
A) Define the core business processes.
B) Identify outdated legacy systems to be replaced.
C) Choose a developmental approach, incremental, evolutionary, or other.
D) Identify the core systems to coordinate centrally.
57. The way to identify core business processes is to conduct a
A) cost–benefit analysis.
B) work–flow analysis.
C) feasibility analysis.
D) business process analysis.