The International Dimension
True/False Questions
1) The global economy has intensified rivalry by increasing product and vendor choices and
by accelerating the flow of information about price, product, availability, and service.
Answer: True
Rationale:
In a global economy, increased connectivity and access to information have led to heightened
competition by providing consumers with more choices and facilitating rapid dissemination
of information about products and services. This intensification of rivalry among businesses
is a characteristic feature of the global marketplace.
2) Unlike business processes, information systems procedures need not reflect local cultural
values and norms.
Answer: False
Rationale:
Information systems procedures are often deeply intertwined with business processes and
organizational culture. Therefore, they may need to reflect local cultural values and norms to
ensure alignment with the organization's objectives and to facilitate effective communication
and collaboration among employees and stakeholders.
3) Distributed database processing refers to the processing of multiple databases that reside in
a single location.
Answer: False
Rationale:
Distributed database processing involves the processing of data across multiple databases that
are geographically distributed across different locations. This approach allows for
decentralized data management and enables organizations to leverage resources efficiently
while ensuring data availability and accessibility across various locations.
4) As long as there is an adequate data interface between two information systems that are in
locations that are diverse in terms of business practices and language, they can operate
independently, sharing data when necessary.
Answer: True
Rationale:
Effective data interfaces can facilitate interoperability between information systems located
in diverse geographical locations with varying business practices and languages. These
interfaces enable systems to communicate and exchange data seamlessly, allowing for
independent operation while supporting collaboration and data sharing when needed.
5) A supply chain is a network of organizations and facilities that transforms raw materials
into products delivered to customers.
Answer: True
Rationale:
A supply chain encompasses the interconnected network of organizations, facilities,
processes, and resources involved in the transformation of raw materials into finished
products and their delivery to customers. It involves various stages such as sourcing,
manufacturing, distribution, and retailing, all aimed at meeting customer demand efficiently
and effectively.
6) The bullwhip effect is a phenomenon in which the variability in the size and timing of
orders decreases at each stage up the supply chain, from customer to supplier.
Answer: False
Rationale:
The bullwhip effect refers to the phenomenon where the variability in the size and timing of
orders increases as information moves upstream along the supply chain, from customers to
suppliers. This amplification of demand variability can lead to inefficiencies such as
inventory imbalances, stockouts, and overstocking, adversely affecting supply chain
performance.
7) The bullwhip effect increases the overall profitability of the supply chain.
Answer: False
Rationale:
The bullwhip effect typically leads to inefficiencies and increased costs within the supply
chain rather than enhancing profitability. By causing demand distortion and inventory
fluctuations, the bullwhip effect can result in increased inventory holding costs, production
inefficiencies, and decreased customer satisfaction, thereby negatively impacting overall
profitability.
8) International organizations have more IS and IT assets, and those assets are exposed to
more risk and greater uncertainty.
Answer: True
Rationale:
International organizations typically operate in diverse and complex environments
characterized by varying regulatory frameworks, cultural differences, and geopolitical risks.
As a result, they often have larger and more diverse information systems (IS) and information
technology (IT) assets compared to domestic organizations, which exposes them to greater
risks and uncertainties related to cybersecurity threats, compliance challenges, and
geopolitical instability.
9) The business processes that support the competitive strategies of the multinational
companies tend to be simpler and easier to implement, as they are isolated from one another.
Answer: False
Rationale:
Multinational companies often operate in highly complex and interconnected environments,
requiring sophisticated and integrated business processes to support their competitive
strategies. These processes may span multiple regions, functions, and business units,
necessitating alignment, coordination, and integration across diverse organizational domains.
As a result, the business processes of multinational companies are typically complex and
require careful planning, implementation, and management.
10) Technical and data safeguards change for international information systems.
Answer: False
Rationale:
While international information systems may require additional considerations due to factors
such as diverse regulatory environments and cultural differences, the fundamental principles
of technical and data safeguards remain consistent regardless of geographical location. These
safeguards aim to protect information assets, ensure data integrity and confidentiality, and
mitigate cybersecurity risks, irrespective of whether the systems operate domestically or
internationally.
Multiple Choice Questions
1) Which of the following statements is true of the impact of globalization on value chains
and business processes?
A) Companies must develop a standardized global strategy irrespective of where they are
operating from.
B) Companies prefer to perform all their processes in-house as it is more cost-effective than
outsourcing.
C) Manufacturing of a final product is frequently distributed throughout the world.
D) Increased globalization calls for greater attention to promotional aspects of the marketing
mix as opposed to the product.
Answer: C
Rationale:
Globalization has led to the widespread distribution of manufacturing processes across
different regions of the world. This decentralization of manufacturing allows companies to
take advantage of various factors such as lower labor costs, access to specialized expertise,
and proximity to raw materials, resulting in the frequent distribution of the manufacturing of
final products across multiple locations.
2) Which of the following components of an international IS is least affected by
internationalization?
A) hardware
B) people
C) procedures
D) data
Answer: A
Rationale:
Hardware, unlike other components such as people, procedures, and data, is relatively less
affected by internationalization. While hardware specifications may vary based on regional
standards and preferences, the core functionalities and capabilities of hardware components
remain largely consistent across international boundaries.
3) The process of making a computer program work in a second language is called ________
software.
A) virtualization
B) collaborative filtering
C) localizing
D) enterprise
Answer: C
Rationale:
The process of adapting a computer program to operate in a second language or in multiple
languages to cater to users from different linguistic backgrounds is known as software
localization. This process involves translating user interfaces, modifying functionality, and
adjusting cultural aspects to ensure the software meets the linguistic and cultural preferences
of its target audience.
4) When localizing a computer program, which of the following must a firm NOT do?
A) translate the user interface
B) avoid redesigning labels in forms and reports
C) adjust sorting order for different character sets
D) redraw and translate diagrams
Answer: B
Rationale:
Redesigning labels in forms and reports is an essential aspect of localizing a computer
program to ensure consistency and clarity in user communication. Therefore, it is incorrect to
suggest that a firm should avoid redesigning labels during the localization process.
5) Distributed database processing refers to the processing of ________.
A) a single database that resides in multiple locations
B) multiple databases that reside in a single location
C) only those databases that contain copies of the same data items
D) only those databases that are divided onto nonoverlapping segments
Answer: A
Rationale:
Distributed database processing involves the processing of a single database that is
distributed across multiple locations. This approach allows for decentralized data
management and enables efficient access and processing of data across different geographical
locations while maintaining data consistency and integrity.
6) If the distributed database divides the database into nonoverlapping segments, it is called a
________ database.
A) hierarchical
B) partitioned
C) temporal
D) relational
Answer: B
Rationale:
A distributed database that divides the database into nonoverlapping segments, with each
segment assigned to a specific location or node, is referred to as a partitioned database. This
partitioning strategy helps distribute data processing tasks across multiple nodes, enhancing
scalability and performance in distributed computing environments.
7) Because an order processing functional system located in, say, the United States is
independent of the manufacturing systems located in, say, Taiwan, it implies that ________.
A) it is necessary to accommodate language, business, and cultural differences in a single
system
B) products need not always be customized to suit local preferences
C) lack of integration can be extremely disadvantageous for international organizations
D) they can operate independently as long as there is an adequate data interface between the
two systems
Answer: D
Rationale:
The independence of functional systems across different geographical locations implies that
they can operate autonomously as long as there is effective data communication and
integration between them. This autonomy allows each system to cater to its specific
operational requirements and business environment without being overly constrained by the
processes or constraints of other systems.
8) Cross-functional, integrated systems, such as ERP, solve the problems of data isolation by
integrating data into a database that provides a comprehensive and organization-wide view.
However, this would require ________.
A) all processes to be located in the same geographical place
B) the company to standardize on a single language
C) backshoring processes to the home country
D) the company to customize its product offerings
Answer: B
Rationale:
To achieve effective integration and data consistency across cross-functional systems like
ERP (Enterprise Resource Planning), it is essential for the company to standardize on a single
language for data representation and communication. Standardization of language facilitates
seamless data exchange and interoperability between different modules and functions within
the ERP system, ensuring accurate and consistent information flow across the organization.
9) A(n) ________ is a network of organizations and facilities that transforms raw materials
into products delivered to customers.
A) organizational hierarchy
B) flat organization
C) organizational architecture
D) supply chain
Answer: D
Rationale:
A supply chain refers to a network of interconnected organizations, facilities, processes, and
resources involved in the transformation of raw materials into finished products and their
delivery to customers. This network encompasses various entities such as suppliers,
manufacturers, distributors, retailers, and logistics providers, all collaborating to fulfill
customer demand efficiently and effectively.
10) Which of the following statements is true of the supply chain?
A) All members of the supply chain of a firm must have geographical proximity.
B) Every supply chain must include suppliers, manufacturers, distributors, retailers, and
customers.
C) Each organization in the chain is connected to just one company up the chain (toward the
supplier) and down the chain (toward the customer).
D) The supply chain includes transportation companies, warehouses, and inventories.
Answer: D
Rationale:
The supply chain encompasses a wide range of entities and activities beyond the direct
suppliers and customers of a firm. It includes various intermediaries and service providers
such as transportation companies, warehouses, distribution centers, and inventory
management systems, all of which play crucial roles in the efficient flow of goods and
information along the supply chain. Therefore, option D is the correct statement about the
supply chain.
11) Which of the following describes the bullwhip effect?
A) The value of a telecommunications network is proportional to the square of the number of
connected users of the system.
B) The performance improvement to be gained from using some faster mode of execution is
limited by the fraction of the time the faster mode can be used.
C) The variability in the size and timing of orders increases at each stage up the supply chain,
from customer to supplier.
D) New classes create new applications resulting in new markets and new industries.
Answer: C
Rationale:
The bullwhip effect refers to the phenomenon where the variability in the size and timing of
orders increases as information moves up the supply chain, from customers to suppliers. This
distortion in demand information can lead to inefficiencies such as excess inventory,
stockouts, and increased costs throughout the supply chain.
12) The bullwhip effect ________.
A) is not related to erratic consumer demand
B) forces distributors, manufacturers, and suppliers to carry smaller inventories than
necessary
C) increases the overall profitability of the supply chain
D) can be eliminated by restricting access to consumer-demand information from the retailer
to only a few participants in the supply chain
Answer: A
Rationale:
The bullwhip effect is often related to erratic consumer demand, where small fluctuations in
consumer demand at the retail level can result in amplified demand variations as information
moves upstream in the supply chain. This phenomenon can occur due to factors such as order
batching, lead time variability, and lack of coordination among supply chain partners.
13) To overcome challenges in international information systems, some organizations
develop alternative versions of the system that support different processes in different
countries. This results in ________.
A) a long-term profit preceded by short-term losses
B) standardized development rates across countries
C) system design challenges
D) a set standard for business processes that meets all requirements
Answer: C
Rationale:
Developing alternative versions of information systems to support different processes in
different countries can lead to system design challenges. These challenges may include
reconciling differences in business practices, regulatory requirements, cultural norms, and
language preferences across diverse international markets, which can complicate system
development and implementation efforts.
14) One of the challenges for international IS project management is that the development
rates vary among cultures and countries, because ________.
A) some cultures have a 35-hour workweek, and some have a 60-hour workweek
B) worker expectations vary among cultures and nations
C) many developed countries have been less willing to invest in quality
D) effective communication is more expensive today
Answer: A
Rationale:
Development rates can vary among cultures and countries due to differences in work
practices, including variations in work hours, labor laws, and cultural attitudes toward work.
For example, some cultures may prioritize work-life balance with shorter workweeks, while
others may have longer work hours as a cultural norm. These differences can impact project
timelines, resource availability, and overall project management approaches.
15) The principal planning task for the IT department in an organization is to ________.
A) focus on quantity more than quality
B) align IT and IS resources with the customer requirements
C) integrate the organization's information systems with the outsourced vendors' information
systems
D) align IT and IS resources with the organization's competitive strategy
Answer: D
Rationale:
The principal planning task for the IT department is to align IT and IS resources with the
organization's competitive strategy. This involves understanding the strategic goals and
objectives of the organization and leveraging technology and information systems to support
and enhance the organization's competitive advantage in the marketplace.
16) International outsourcing is most advantageous ________.
A) when control on all aspects of its operations is essential for a firm
B) for those firms that have a strong presence in the domestic market
C) when domestic production costs are low
D) for functions that need to be operational 24x7
Answer: D
Rationale:
International outsourcing is most advantageous for functions that need to be operational
24x7, such as IT support services, customer service centers, or back-office operations.
Outsourcing such functions to locations with different time zones allows for continuous
operation and support, leading to improved service levels and responsiveness to customer
needs.
Essay Questions
1) Briefly explain the two major ways in which thinking about competitive strategies has
changed in today's global economy.
Answer: The decision involving a global competitive strategy requires the consideration of
the following two changing factors.
First, the sheer size and complexity of the global economy means that any organization that
chooses a strategy allowing it to compete industry-wide is taking a very big bite! Competing
in many different countries, with products localized to the language and culture of those
countries, is an enormous and expensive task.
Second, the size of the world economy, combined with the Internet, enables unprecedented
product differentiation. If you choose to produce the world's highest quality and most exotic
oatmeal—and if your production costs require you to sell that oatmeal for $350 a pound—
your target market might contain only 200 people worldwide. The Internet allows you to find
them—and them to find you.
2) List the issues that need to be addressed when localizing a computer program.
Answer: The factors to address when localizing software are:
• Translate the user interface, including menu bars and commands.
• Translate, and possibly redesign, labels in forms, reports, and query prompts.
• Translate all documentation and help text.
• Redraw and translate diagrams and examples in help text.
• Translate all error messages.
• Translate text in all message boxes.
• Adjust sorting order for different character set.
• Fix special problems in Asian character sets and in languages that read and write from right
to left.
3) How are international business processes likely to be developed to overcome the present
challenges of international cross-functional applications?
Answer: In the future, it is likely that international business processes will be developed more
like interorganizational business processes to overcome the present challenges. A high-level
process will be defined to document the service responsibilities of each international unit.
Then SOA standards will be used to connect those services into an integrated, crossfunctional, international system. Because of encapsulation, the only obligation of an
international unit will be to deliver its defined service. One service can be delivered using
procedures based on autocratic management policies, and another can be delivered using
procedures based on collaborative management policies. The differences will not matter to an
SOA-based crossfunctional system.
4) How can information reduce or eliminate the bullwhip effect?
Answer: To eliminate the bullwhip effect, all participants in the supply chain must be given
access to consumer-demand information from the retailer. Each organization can thus plan its
inventory or manufacturing based on the true demand (the demand from the only party that
introduces money into the system) and not on the observed demand from the next
organization up the supply chain. Of course, an interorganizational information system is
necessary to share such data.
Without knowledge of the true demand, the supply chain is vulnerable to bullwhip effects.
However, if each entity can, via an information system, obtain data about the true demand—
that is, the demand from the retail customers who are the source of funds for this chain—then
each can anticipate orders. The data about true demand will enable each entity to meet order
requirements, while maintaining a smaller inventory.
5) Explain how managing a global IS development project will involve challenges in the
areas of time, quality, and costs.
Answer: The challenges posed while managing a global IS development project are time
management, quality, and costs.
Time management is more difficult because teams in different cultures and countries work at
different rates. Some cultures have a 35-hour workweek, and some have a 60-hour
workweek. Some cultures expect 6-week vacations, and some expect 2 weeks. Some cultures
thrive on efficiency of labor, and others thrive on considerate working relationships. There is
no standard rate of development for an international project.
Quality standards vary among countries. The IT industry in some nations, like India, has
invested heavily in development techniques that increase program quality. Other countries,
like the United States, have been less willing to invest in quality. In any case, the integration
of programs of varying quality results in an inconsistent system.
In terms of cost, different countries and cultures pay vastly different labor rates. Using critical
path analysis, managers may choose to move a task from one team to another. Doing so,
however, may substantially increase costs. Thus, management may choose to accept a delay
rather than move work to an available (but more expensive) team. The complex trade-offs
that exist between time and cost become even more complex for international projects.
Test Bank for Using MIS
David M. Kroenke
9780133029673, 9780135191767, 9780134106786, 9780138132484, 9780136100751, 9780134606996
