FINAL EXAM

Question 1

An ___________ architecture consists of the basic information systems required by organizations to coordinate worldwide trade and other activities.

Answer 1

international information systems

Question 2

The global business drivers can be divided into two groups:

Answer 2

General cultural factors and specific business factors.

Question 3

The three main organizational issues in globalizing a business are:

Answer 3

1. Choosing a strategy.
2. Organizing the business structure. (decentralized, centralized, coordinated),
3. Organizing the systems management area.

Question 4

The four main types of information systems configuration are:

Answer 4

1. Centralized systems: Systems development and operation occur totally at the domestic home base.
2. Duplicated systems: Development occurs at the home base but operations are handed over to autonomous units in foreign locations.
3. Decentralized systems: Each foreign unit designs its own unique solutions and systems.
4. Networked systems: Systems development and operations occur in an integrated and coordinated fashion across all units.

Question 5

Is a process used by companies to manage and integrate the important parts of their businesses.

Can also integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.

Answer 5

Enterprise resource planning (ERP)

Question 6

Technology can be thought of as the application of scientific knowledge for practical purposes. It is composed by three elements:

Answer 6

1. Hardware: It is the part of an information system you can touch (computers, keyboards, disk drives, iPads, and flash drives)
2. Software: It is a set of instructions that tells the hardware what to do. Software is not tangible.
3. Data: it is a collection of facts

Question 7

It is a system model described as communication exchanges between two stations, transmitter and receiver.

Answer 7

Communication system

Question 8

Types of communication systems:

Answer 8

Analog, digital, wired, wireless

Question 9

Is the study, design, development, implementation, support or management of computer-based information systems—particularly software applications and computer hardware.

Is the application of technology to solve business or organizational problems on a broad scale.

Answer 9

Information technology

Question 10

Science and practice of transmitting information by electromagnetic means.

Answer 10

Telecommunication

Question 11

Is the process of establishing a mutually beneficial relationship with other business people and potential clients or customers. Refers to meeting other business owners, potential suppliers, or other professionals who have business experiences to help you grow your business.

Answer 11

Business networking

Question 12

There are three primary pillars of responsibility for an IT department at a company:

Answer 12

1. IT governance: This refers to the combination of policies and processes that ensure IT systems are effectively run and in alignment with the organization’s needs.
2. IT operations: This refers to the daily work of an IT department.
3. Hardware and infrastructure: This focus area refers to all the physical components of IT infrastructure.

Question 13

A company that operates in its home country, as well as in other countries around the world. It maintains a central office located in one country, which coordinates the management of all its other branches or factories.

It derives at least a quarter of its revenues outside its home country.

Answer 13

Multinational corporation (MNC)

Question 14

Multinational corporation (MNC)

Answer 14

a) Access to lower production costs
b) Proximity to target international markets
c) Avoidance of tariffs

Question 15

Models of MNC’s:

Answer 15

a) Centralized: Its advantages are o avoid tariffs and import quotas and lower production costs.
b) Regional: It includes subsidiaries and affiliates that all report to the headquarters.
c) Multinational: The subsidiaries and affiliates are more independent in their operations.

Question 16

The movements of passengers or freight from an origin to a destination relying on several modes of transportation. The exchange of freights is between two transportation modes.

Answer 16

Intermodal Transportation

Question 17

The movements of passengers or freight from an origin to a destination relying on several modes of transportation. Technically it is the same as intermodal transportation, but requires a higher level of integration between carriers and terminal operators.

Answer 17

Multi-modal transportation

Question 18

The movements of passengers or freight within the same mode of transportation.

Answer 18

Transmodal transportation

Question 19

A logistically linked system using two or more transport modes with a single rate.

Answer 19

Multi-modal transportation network.

Question 20

Part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements

Answer 20

Logistics management

Question 21

Is the process of sourcing goods and services from the international market across geopolitical boundaries.

Answer 21

Global Sourcing

Question 22

__________ is also a globalization approach. This means that, instead of trying to fulfill the requirements of multiple markets, a product is to fully satisfy the needs of the place where it will be present in. Example: Automotive industry.

Answer 22

Localization

Question 23

Is defined as the set of principles that guide the way things are planned and done at a manufacturing facility in order to get quality-compliant products, full customer satisfaction, flexibility in the production line, just-in-time manufacturing and a management style that continuously promote these characteristics (Maskell, 1991).

Answer 23

Global manufacturing

Question 24

If a country imports more than it exports, more money is leaving the country than is coming in through export sales.

Answer 24

Deficit

Question 25

The more a country exports, the more domestic economic activity is occurring. More exports means more production, jobs and revenue. Net exports increase the wealth of a country.

Answer 25

Surplus

Question 26

Is a basket of securities that trade on an exchange, just like a stock. Can contain all types of investments including stocks, commodities, or bonds; some offer U.S. only holdings, while others are international.

Answer 26

Exchange traded fund (ETF)

Question 27

Types of ETFs: They are available to investors that can be used for income generation, speculation, price increases, and to hedge or partly offset risk in an investor's portfolio.

Answer 27

1. Bond ETFs: Government bonds, corporate bonds, and state and local bonds called municipal bonds. 2. Industry ETFs: Particular industry. 3. Commodity ETFs: Crude oil or gold. 4. Currency ETFs: Euro or Canadian dollar. 5. Inverse ETFs: Earns gains from stock declines by shorting stocks.

Question 28

is the science, art, and technology of Enclosing or protecting products for distribution, storage, sale, and use. Can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use.

Answer 28

Packaging

Question 29

Functions of Packaging:

Answer 29

* Protection Prevent breakage (mechanical protection) * Prevent spoilage (barrier to moisture, gases, light, flavors and aromas) * Prevent contamination, tampering and theft Increase shelf life

Question 30

Is any written, electronic, or graphic communications on the packaging or on a separate but associated label. Display of information about a product on its container, packaging, or the product itself

Answer 30

Labeling

Question 31

Are all activities associated with moving materials from source to destination. Can be associated with movement from a manufacturer or distributor to customers, retailers or other secondary warehousing / distribution points.

Answer 31

Distribution

Question 32

Refers to overseeing the movement of goods from supplier or manufacturer to point of sale. Is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain and logistics.

Answer 32

Distribution management

Question 33

Ensures that manufactured goods reach the customer quickly and reliably. (transport logistics, sales logistics).

Answer 33

Distribution logistics

Question 34

Distribution logistics pursue three goals:

Answer 34

1. Availability: They must always ensure that a sufficient quantity of products is available to customers. 2. Cost minimization: High quality demands of the manufacturers require to keep shipping and delivery costs as low as possible. 3. Influence: Distribution logisticians want to have the highest possible say in the marketing of their products.

Question 35

Are an established science that uses many disciplines (anatomy, physiology, physics and biomechanics) to understand how people perform under different circumstances. It’s the science of people at work. Primarily concerned with understanding human capabilities, and then designing the equipment, tools, systems, and processes of work.

Answer 35

Human Factors

Question 36

Means that businesses, in addition to maximizing shareholder value, must act in a manner that benefits society.

Answer 36

Social Responsibility

Question 37

Is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding. If the action or decision causes harm to society or the environment, then it would be socially irresponsible.

Answer 37

theory of social responsibility

Question 38

Means doing the right thing, knowing that moral values that are inherent in society create a distinction between right and wrong

Answer 38

Business ethics

Question 39

• Objectives of Global HRM

Answer 39

1. Create a local appeal without compromising upon the global identity. 2. Generating awareness of cross-cultural sensitivities among managers globally and hiring of staff across geographic boundaries. 3. Training upon cultures and sensitivities of the host country.

Question 40

Is a tax imposed by a nation on imported goods. It may be a charge per unit, a percentage of the value of the goods, or a combination.

Answer 40

Tariff barriers

Question 41

Is the process of bringing or introducing new products or services to market.

Answer 41

Commercialization

Question 42

Commercialization Phases

Answer 42

1. The ideation phase: Ideation attempts to generate new products and services that meet unanswered consumer demands. It solves "The Four Ps," which stand for product, price, place, and promotion. 2. Business process stage: Products most functional designs align with the company's business model, by offering high benefits at low cost. 3. Stakeholder stage: Research and development (R&D) should put a value on the product that could potentially result in increased profitability for the company and satisfies both its customer and stakeholder needs.

Question 43

Types or Organizational Structures: Organizational structure arises during the process of organization and the goal of the board is to increase the value of the firm.

Answer 43

1. Process Structure 2. Unit Structure 3. Linear organizational structure 4. Functional organizational structure 5. Staff and line organizational structure 6. Functional structure 7. Divisional structure 8. Hybrid structure 9. Matrix structure

Question 44

It offers a wide variety of products or services. Every product makes its own “department” and it creates the different branches below it, such as marketing, finance, production, development.

Answer 44

Product Structure

Question 45

It is used by corporations, which conduct business in many markets. The departments are created based on the locations/countries/continents and the subsidiaries have high degree of autonomy

Answer 45

Geographic structure

Question 46

Each function creates one department, which is responsible for a specialization for the whole firm.

Answer 46

Functional Structure

Question 47

It follows a top-down approach, with one-way communication from bosses to employees. It’s controlling, makes all decisions and holds all the power.

Answer 47

Autocratic management styles

Question 48

Managers dictate exactly what they require their subordinates to do and punish those who do not comply. Clear direction, roles, hierarchies and control.

Answer 48

Authoritative management style

Question 49

Managers use their persuasive skills to convince employees that the unilateral decisions that the manager implements are for the good of the team. Trust.

Answer 49

Persuasive management style

Question 50

The manager acts with the best interests of their subordinates at heart. Loyalty and trust.

Answer 50

Paternalistic management style

Question 51

Democratic management styles: Managers encourage employees to give input during the decision-making process, but are ultimately responsible for the final decision.

Answer 51

a) Consultative management style: Managers ask for the opinions and thoughts of their team, consulting the viewpoints of every member of their team. o b) Participative management style: Managers and staff are all active members of the decision process. o c) Collaborative management style: Management creates an open forum for ideas to be discussed extensively before making decisions based on majority rule. o d) Transformational management style: Managers focus their efforts on pushing their staff to achieve accomplishments through encouragement, pushing them past their comfort zones regularly, and consistently motivating their teams to raise their bar for achievements. o e) Coaching management style: The manager’s job is to develop and guide their team, putting their team’s professional development at the forefront of their priorities.