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MIS10E_testbank_CH15

MIS10E_testbank_CH15 - Chapter 15 Managing Global Systems...

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Chapter 15 Managing Global Systems True-False Questions 1. The growth of international trade has radically altered domestic economies around the globe. Answer: True Difficulty: Easy Reference: p. 596 2. Before you develop a corporate strategy and structure for globalization, a firm should determine the appropriate technology infrastructure. Answer: False Difficulty: Easy Reference: pp. 597–598 3. Global business drivers can be divided into two groups: general cultural factors and specific business factors. Answer: True Difficulty: Medium Reference: p. 598 4. The collapse of the Eastern block has speeded the growth of a world culture. Answer: True Difficulty: Easy Reference: p. 598 5. The growth of powerful communications technologies and the emergence of world cultures create the condition for global markets. Answer: True Difficulty: Easy Reference: p. 599 6. Micromarketing is limited to marketing to very small geographic and social units within a domestic market. Answer: False Difficulty: Medium Reference: p. 599 7. A powerful strategic advantage for a globalized firm is lowered cost factors in production. Answer: True Difficulty: Easy Reference: p. 599 8. Particularism is a concept based on accepting the concept of a shared global culture and the penetration of domestic markets by foreign goods and services. Answer: False Difficulty: Hard Reference: p. 600 9. At the cultural level, differences among cultures produce differences in social expectations, politics, and legal rules. Answer: True Difficulty: Easy Reference: p. 600 249
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10. Globalization means that companies can be less concerned with the laws governing the movement of information. Answer: False Difficulty: Easy Reference: p. 600 11. European countries have very strict laws concerning transborder data flows and privacy. Answer: True Difficulty: Easy Reference: p. 600 12. The European Union Data Protection Directive restricts the flow of any information to countries that do not meet strict European laws on personal information. Answer: True Difficulty: Medium Reference: p. 600 13. To avoid the cost and uncertainty of moving information across national boundaries, most multinational firms have developed information systems within each European country. Answer: True Difficulty: Medium Reference: p. 600 14. With the growth of the Internet and reliable phone networks, skilled consultants are readily available to companies operating in global markets. Answer: False Difficulty: Easy Reference: p. 600 15. The accounting practices of a country are tightly intertwined with that country’s legal system. Answer: True Difficulty: Easy Reference: p. 600 16. In international companies, English has become a kind of standard business language. Answer: True Difficulty: Easy Reference: p. 601 17. In a multinational strategy, products and services on sale in different countries are adapted to serve local market conditions.
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