Online Exam 8
A force in the environment to which businesses must respond and that influences the direction of the business is called a business:
International information systems refer to:
systems that talk to one another using the global Internet.
systems used by international businesses.
business processes that span the globe.
the basic information systems required by organizations to coordinate worldwide trade and other activities.
do not recognize the profit until the project is completely finished and they have been paid.
recognize profits before the project is finished.
recognize profits when the project is initialized.
do not recognize the profits until they have been formally audited.
All of the following present challenges to developing global business systems EXCEPT:
foreign accounting practices.
Which of the following is NOT one of the principal management challenges in developing global systems?
Encouraging local users to support global systems
Coordinating applications development
Defining an acceptable test plan
Agreeing on common user requirements
In relation to global systems building, the Internet:
allows the seamless flow of information through the enterprise.
affords local groups stable broadband access.
has reduced networking problems.
reduced the need for skilled IT employees.
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.
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.
What is the first thing you should consider when thinking about building an international information system?
The state of world politics
Look for new technologies that will help you achieve your goals
Consider the global environment where your business will operate, and identify the business drivers for your firm and industry
The business challenges you face in the global environment
A critical necessity for ensuring the integration of local systems into a global system is:
adherence to data and technical standards.
use of standard hardware at the local level.
use of standard user software at the local level.
using standard computers throughout the system.
The network systems structure is the most visible in __________ services.
Which systems are worth sharing on a transnational basis, from a cost and feasibility point of view?
Only systems that support functions that are absolutely critical to the organization
Core systems and worthwhile provincial systems
Core systems and any financial systems that can be easily integrated with each other
Financial and accounting systems
Which of the following is NOT a business driver of global business?
Global communication and transportation technologies
Development of global culture
Emergence of global social norms
Growth of international systems
Of the following, which is one of the central principles recommended in this chapter for a firm organizing itself for international business?
Organize value-adding activities along lines of comparative advantage.
Establish multiple offices for international systems and a global CIO position.
Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.
Develop and operate systems units at the international level first.
Which of the following is NOT an important factor when implementing a global information system solution?
Agreeing on common user requirements
Understanding if your computer system can operate in a global environment
Introducing changes in business processes
Coordinating applications development
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
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.
In a multinational business strategy, the __________ business function is decentralized, dispersed to foreign units.
Most large companies with overseas operations have inherited:
recently built technology platforms for international systems.
batch-oriented reporting from independent foreign divisions to corporate headquarters.
transaction-oriented reporting based at the home office for overseas business.
global marketing systems developed domestically.
Global coordination of all of the major business functions permits the location of business activity according to:
social norms and values.
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