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Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
65) 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
66) 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A) Identify outdated legacy systems to be replaced.
B) Identify the core systems to coordinate centrally.
C) Choose a developmental approach, incremental, evolutionary, or other.
D) Define the core business processes.
67) 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.
68) 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.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
C) "Grand design" approaches typically fail to identify centers of excellence.
D) Opposition is strengthened because of requirements for huge resources.
69) From your reading of the chapter case, which of the following best describes the challenge
Primark was facing as a global company?
A) inadequate information for managerial decision making
B) lack of buy-in for global systems by foreign units
C) diverse information systems throughout foreign units
D) managing a global supply chain
70) In order to define centers of excellence in a global firm, you would first need to identify
A) functional areas.
B) core business processes.
C) SOPs.
D) core competencies.
71) Which of the following is not one of the main benefits to implementing global systems?
A) superior management and coordination
B) vast improvements in operation
C) new economies of scale at production facilities
D) reduced hardware costs
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
72) 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.
B) change management.
C) implementation.
D) advocacy.
73) 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.
74) In relation to global systems building, the Internet
A) allows the seamless flow of information through the enterprise.
B) affords local groups stable broadband access.
C) has reduced some networking problems.
D) all of the above.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
75) 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 the above.
76) 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.
77) Which of the following is not one of the principle problems of international networks?
A) network capacity
B) poor quality of international service
C) network standards
D) regulatory constraints
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
78) In developing countries, use of the Internet is limited by all of the following except
A) use of mobile telephones.
B) high cost of PCs.
C) poor bandwidth capacity.
D) unreliable power grids.
79) 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.
80) 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
C) CRM systems
D) none of the above
81) To solve its global management and business challenges, ____________________had all of
its business units adopt a standard core version of SAP software and standard
manufacturing and production processes.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
A) L’Oréal
B) Avon
C) Mary Kay
D) Estee Lauder
82) These countries are among the major suppliers sourced to build the iPhone:
A) South Korea, Germany, Canada and Italy
B) South Korea, Canada, Japan and Italy
C) Canada, Germany, Japan and Italy
D) South Korea, Germany, Japan and Italy
83) Although changing technology is a key driving factor leading toward global markets, you
need to have a ___________________before you can rationally choose the right
technology.
A) corporate strategy and construction
B) global strategy and construction
C) global strategy and structure
D) corporate strategy and structure
84) ___________________________is defined as the movement of information across
international boundaries in any form.
A) Extraborder data flow
B) Crossborder data flow
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
C) Transborder data flow
D) Intraborder data flow
85) English has become a kind of standard business language, this is truer at higher levels of
companies and_____________________________.
A) throughout the strategic and lower ranks
B) not throughout the strategic and lower ranks
C) not throughout the middle and lower ranks
D) throughout the middle and lower ranks
86) In order to identify core systems, the first step is to define a short list
of________________________.
A) non-critical core business processes
B) critical core business processes
C) non-critical core business rules
D) critical core business rules
87) ____________________is defined as the extent to which your authority is accepted on
grounds of competence, vision, or other qualities.
A) Acceptability
B) Legitimacy
C) Validity
D) Suitability
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
88) In order to guarantee integration of transnational information systems architecture, some
____________________in the firm must establish data standards as well as other technical
standards with which sites are to comply.
A) central expert
B) central authority
C) local expert
D) local of authority
89) Truly integrated global systems must have _________________________,the ability to link
together the systems and people of a global firm into a single integrated network just like
the phone system but capable of voice, data, and image transmissions.
A) longevity
B) connectivity
C) relativity
D) collectively
90) Which are some the major problems of international networks?
A) Quality of service, Security, Costs and tariffs, and Installation delays
B) Human recourses, Security, Costs and tariffs, and Installation delays
C) Quality of service, Human recourses, Costs and tariffs, and Installation delays
D) Quality of service, Security, Human recourses, and Installation delays
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
91) A(n) international information systems ________ consists of the basic information systems
required by organizations to coordinate worldwide trade and other activities.
92) The global ________ created by television, the Internet, and other globally shared media
permits different peoples around the world to develop common expectations and values.
93) A(n) ________ is formed by consumers around the world who are interested in consuming
similar products that are culturally approved.
94) Global markets, production, and administration create the conditions for powerful global
economies of ________.
95) Japanese consumers who only want to purchase products made in Japan are an example of
cultural ________.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
96) The movement of information across international boundaries is called ________.
97) ________ firms have no single national headquarters but have many regional headquarters
and perhaps a world headquarters.
98) ________ systems support functions that are absolutely critical to the organization.
99) ________ is defined as the extent to which your authority is accepted on grounds of
competence, vision, or other qualities.
100) ________ is defined as bringing the opposing local organization groups into the process of
designing and implementing an information systems solution without giving up control over
the direction and nature of the change.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
101) Apple designs the iPhone in the _____________________and relies on suppliers in the
United States, Germany, Italy, France, and South Korea for other parts.
102) An ________________________________________ consists of the basic information
systems required by organizations to coordinate worldwide trade and other activities.
103) Brazil, Russia, India, and China are now referred to as the _________________countries,
all judged to be at a similar stage of advanced economic development.
104) The _____________________________ is the most visible in financial services where the
homogeneity of the product—money and money instruments—seems to overcome cultural
barriers.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
105) ____________________________support functions that are absolutely critical to the
organization.
106) ____________________________ and other coordination costs increase as the firm moves
from local option systems toward regional and global systems.
107) The way to identify these core business processes is to conduct
a___________________________.
108) Truly integrated global systems must have___________________________—the ability to
link together the systems and people of a global firm into a single integrated network just
like the phone system but capable of voice, data, and image transmissions.
109) The entire process of converting software to operate in a second language is
called________________________.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
110) What steps do the authors recommend be taken to develop an international information
systems architecture?
111) List at least four general cultural factors and four specific business factors driving global
business. Which two factors (one of each) do you feel are most problematic at the current
moment? Why?
112) What are the four specific types of business challenges to global business systems? Which
one do you think will be easiest to solve? Why?
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
113) How do cultural, legal, political, and social expectations affect global business?
114) Describe the four main global strategies that form the basis for global firms' organizational
structure.
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
115) What are the organizational principles a company should follow to develop a global
company and its information systems support structure? Do you agree? Would you change
these principles, or add others? Support your answer.
116) List at least four difficult problems for management in the development of the international
information system. Which do you see as the most problematic, and why?
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
117) You are working for a global electronic parts manufacturing company with divisions in
Taiwan, Malaysia, Australia, and Germany, that has embarked on developing a global
enterprise system. To ensure that overseas divisions comply with the new system, they are
considering a cooptation strategy in which they will permit each country unit the
opportunity to develop one transnational application first in its home territory, and then
throughout the world. What are the benefits and drawbacks to this approach? Are there any
other solutions for the company's cooptation strategy?
118) You work for a business consulting firm, and you have been asked to advise Bamboo
Home, a home furniture retailer on implementing a global information systems. What
general benefits can Bamboo Home expect from a globalized system?
119) How does the Internet benefit the development of a global information system? Should all
global systems be based on the Internet?
Laudon/Laudon/Brabston, Management Information Systems, Seventh Canadian Edition
