Chapter 15 Managing Global Systems

1) The growth of international trade has radically altered domestic economies around the globe.

2) Today, the production and design of many electronic products are parcelled out to a number of different countries.

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

4) A business driver is a force in the environment to which businesses must respond and that influences the direction of the business.

5) The major dimensions for developing an international information systems architecture are the global environment, the corporate global strategies, the structure of the organization, the management and business processes, and the technology platform.

6) The decline of powerful communications technologies and the emergence of world cultures create the condition for global markets.

7) Responding to demand, global production and operations have emerged with precise online coordination between far-flung production facilities and central headquarters thousands of miles away.

8) Production driven by worldwide global demand can be concentrated where it can best be accomplished, fixed resources can be allocated over larger production runs, and production runs in larger plants can be scheduled more inefficiently and can be more imprecisely estimated.

9) Transborder data flow is defined as the movement of information across international boundaries only on the Internet.

10) The domestic exporter strategy is characterized by heavy decentralization of corporate activities in the home country of origin.

11) The multinational strategy concentrates financial management and control out of a central home base while centralizing production, sales, and marketing operations to units in other countries.

12) Franchisers are a mix, the product is created, designed, financed, and initially produced in the home country, but for product-specific reasons, must rely heavily on foreign personnel for further production, marketing, and human resources.