Module 9: Global Information Systems

Learning Objectives
After studying this module, you should be able to:
1. Discuss the reasons for globalization and the use of global information systems.
2. Describe global information systems (GIS) and their requirements and
components.
3. Explain the four types of organizational structures used with GIS.
4. Examine five obstacles to using global information systems.

Section 9-1: Why Go Global?

Key Concepts
 Global Economy: Creates customers demanding integrated worldwide services.
 Expansion of Global Markets: A major factor driving the development of global
information systems (GIS).
 E-Business as a Driving Force:
 E-business simplifies communication, improves business relationships, and
offers new opportunities for consumers and businesses.
 The Internet enables companies to conduct business globally, offering
products and services across borders.
 Growth of the Internet:
 As of March 2021, approximately 5.17 billion people worldwide were
using the Internet.
 Highest growth occurred in Africa, while North America saw the lowest
growth.
Example of Globalization:
 A U.S.-based shoe company:
 Procures leather in Italy.
 Produces upper parts of shoes in Italy due to high-quality materials and
expertise.
 Ships them to China for attaching soles due to cheaper labour.
 Tests products in Ireland due to advanced technological facilities.
 Sells the final product in the U.S.
Benefits of Going Global:
 Access to cheaper labour and raw materials.
 Improved efficiency through regional specialization.
 Increased market reach and customer base.

Section 9-2: Global Information Systems (GIS)

Definition:
 A GIS works across national borders, facilitating communication between
headquarters and subsidiaries in other countries.
 It incorporates all technologies and applications found in typical information
systems to gather, store, manipulate, and transmit data across cultural and
geographic boundaries.
Components of GIS:
1. Global Database:
 Challenges include different character sets, formats for phone numbers and
postal codes, and currency conversion.
 Software like SAP offers tools to address these challenges.
2. Information-Sharing Technologies:
 Includes e-mail, remote data entry, audio/video conferencing, and
distributed databases.
 Small companies may outsource to leverage expertise, while large
companies develop custom applications.
Requirements of GIS:
1. Global Data Access: Enables real-time monitoring of operations worldwide.
2. Consolidated Global Reporting: Facilitates comparison of financial and
operational data across subsidiaries.
3. Communication Between Headquarters and Subsidiaries: Ensures smooth
decision-making and planning.
4. Management of Short-Term Foreign Exchange Risks: Minimizes currency
fluctuation impacts.
5. Strategic Planning Support: Helps manage global risks and optimize supply
chains.
Challenges in Designing a GIS:
 Balancing international system development standards with local responsiveness.
 Time zones can complicate system maintenance and backups.
 Sharing software globally is difficult due to localization needs and
support/maintenance issues.

Section 9-3: Organizational Structures and GIS

Four Types of Organizational Structures:
1. Multinational Structure:
 Production, sales, and marketing are decentralized.
 Financial management remains centralized at the parent company.
 Example: Nestlé, which uses different financial systems at its subsidiaries
around the world.
 Advantage: Reduces communication needs between subsidiaries and
headquarters, allowing local autonomy.
2. Global Structure:
 Highly centralized information systems.
 Subsidiaries rely on headquarters for process and control decisions, system
design, and implementation.
 Example: McDonald’s, which tailors its menu to local tastes but centralizes
key processes.
 Advantage: Ensures consistency and standardization across locations.
3. International Structure:
 Operates like a multinational corporation but with more dependence on
headquarters for process and production decisions.
 Regular exchange of IT personnel encourages joint development of
applications.
 Example: Caterpillar Corporation, which uses two-way communication for
expertise sharing.
4. Transnational Structure:
 Parent company and subsidiaries work together to design policies,
procedures, and logistics.
 No specific headquarters: authority and responsibility are shared across
regions.
 Example: Citigroup, Sony, and Ford, which strive to adopt this structure for
global efficiency and local responsiveness.
 Advantage: Combines global integration with local flexibility.
Supporting Offshore Outsourcing:
 Offshore outsourcing involves choosing an outsourcing firm in another country to
provide needed services or products.
 Common tasks outsourced include medical diagnosis, tax preparation,
programming, application development, web site development, help desk/user
support, and quality assurance/software testing.
 Benefits: Cost savings, access to specialized skills, and improved efficiency.
Section 9-4: Obstacles to Using GIS
Obstacle 1: Lack of Standardization
 Differences in time zones, taxes, language, and work habits hinder integration.
 Too much standardization can reduce flexibility in responding to local preferences.
 Solution: Balance international standards with modularization and customization
for local responsiveness.
Obstacle 2: Cultural Differences
 Values, attitudes, and behaviours vary across cultures.
 Examples:
 Last-minute reservations may work in some cultures but not in others.
 Images or content acceptable in one culture may offend another.
 Solution: Education and training to address cultural sensitivities.
Obstacle 3: Diverse Regulatory Practices
 Policies on business practices, technology use, and transborder data flow (TDF)
differ by country.
 Examples:
 China restricts social media platforms like Twitter.
 EU's GDPR imposes strict privacy regulations on companies collecting data
from EU citizens.
 Solution: Adopt open-source systems where possible, but this requires significant
investment.
Obstacle 4: Poor Telecommunication Infrastructures
 Varying levels of infrastructure quality across countries affect GIS performance.
 Examples:
 In countries with slower Internet, websites should avoid heavy graphics and
animations.
 Differences in Internet protocols, costs, speeds, and reliability between
countries like the U.S. and Egypt.
 Solution: Tailor systems to match local infrastructure capabilities.
Obstacle 5: Lack of Skilled Analysts and Programmers
 Shortage of qualified IT professionals in many regions.
 Example: Training programs offered through the Internet can bridge the skills gap
in economically developing nations.
 Solution: Invest in training and certification programs.

Case Studies
Case Study 9-1: Global Information Systems at Toyota Motor Company
 Role of GIS in JIT (Just-In-Time) Inventory:
 Toyota’s GIS manages real-time inventory across its manufacturing facilities
and suppliers' facilities.
 Requires suppliers to interface with Toyota's systems for seamless
operations.
 Dealer Daily System:
 Centralized data centre for Toyota and Lexus dealers in the U.S.
 Reduces paperwork and provides quick responses to financing applications.
 Vehicle Order Management (VOM) System:
 Implemented in Europe, impacting 13 countries.
 Improves delivery times and inventory management, reducing operating
costs.
Case Study 9-2: Information Technologies Support Global Supply Chain
 Challenges Faced by MNCs:
 Quality and scarcity of raw materials.
 Counterfeiting, especially in the pharmaceutical industry.
 Environmental challenges like tsunamis, monsoons, and volcanoes.
 Piracy and theft of intellectual property.
  IT Solutions:
 Data warehouses and analytics for analysing and delivering key supply chain
information.
 RFID tags, GPS sensors, and QR codes for improving supply chain efficiency.
 Ports America uses optical character recognition cameras, RFID tags, and
GPS sensors to track containers and cargo movements.

Key Terms
 Global Information System (GIS): Works across national borders to facilitate
communication and manage global operations.
 Global Structure: Highly centralized information systems where subsidiaries
depend on headquarters for decisions.
 International Structure: Similar to multinational but with more reliance on
headquarters for process and production decisions.
 Multinational Structure: Decentralized operations with financial management
centralized at the parent company.
 Transnational Structure: Shared authority and responsibility across regions,
combining global integration with local responsiveness.
 Offshore Outsourcing: Choosing an outsourcing firm in another country to
provide services or products.
 Transborder Data Flow (TDF): Restrictions on what type of data can be
captured and transmitted in foreign countries.
 Multinational Corporations (MNCs): Organizations with assets and operations
in at least one country other than their home country.
 JIT (Just-In-Time) Inventory System: Ensures components are available only
when needed, minimizing waste.

Detailed Study Notes

Reasons for Globalization
 Customer Demand: Customers expect integrated worldwide services.
 Market Expansion: Access to new markets increases revenue potential.
 Cost Efficiency: Cheaper labour and raw materials in certain regions.
 Improved Communication: The Internet simplifies communication and enhances
collaboration.
Components of GIS
1. Global Database:
 Stores and manages data across multiple countries.
 Challenges: Different character sets, formats, and regulatory requirements.
2. Information-Sharing Technologies:
 Facilitates communication and coordination between headquarters and
subsidiaries.
 Tools: E-mail, video conferencing, groupware, and cloud-based collaboration
platforms.
Organizational Structures
 Multinational:
 Focuses on local markets with decentralized operations.
 Subsidiaries operate independently but report to headquarters.
 Global:
 Centralized control with standardized processes.
 Subsidiaries follow headquarters’ guidelines strictly.
 International:
 Combines elements of both multinational and global structures.
 Encourages cooperation and knowledge sharing between headquarters and
subsidiaries.
 Transnational:
  Fully integrated structure with shared authority and responsibility.
 Best suited for organizations requiring both global efficiency and local
adaptability.
Obstacles to GIS Implementation
1. Lack of Standardization:
 Variations in time zones, taxes, languages, and work habits.
 Over-standardization reduces local flexibility.
2. Cultural Differences:
 Attitudes toward technology, gender roles, and business practices vary.
 Content and images must align with cultural norms.
3. Diverse Regulatory Practices:
 Laws governing intellectual property, privacy, and censorship differ globally.
 Compliance with TDF regulations is critical.
4. Poor Telecommunication Infrastructures:
 Slow or unreliable Internet in certain regions affects system performance.
 Tailoring systems to match local infrastructure is necessary.
5. Lack of Skilled Analysts and Programmers:
 Shortage of qualified IT professionals in many regions.
 Training programs can help bridge the skills gap.
Examples of GIS in Action
 FedEx:
 Uses COSMOS for package tracking.
 Implements Command & Control systems for weather-assisted logistics.
 Offers FedEx Global Trade Manager and INTrade for international shipping
assistance.
 Toyota:
 Implements JIT inventory systems to minimize waste.
 Uses Dealer Daily for efficient dealer operations.
 Implements Vehicle Order Management (VOM) to improve European
operations.
 SAP Corporation:
 Provides enterprise resource planning (ERP) software designed for global
use.
 Supports multiple languages and currencies.
 Offers specialized software like Supplier Relationship Management (SRM),
Product Lifecycle Management (PLM), and SAP-HANA for in-memory
analytics.

Summary of Key Points

1. Globalization drives the need for GIS to manage complex global operations.
2. GIS Components include global databases and information-sharing technologies.
3. Organizational Structures determine how GIS is implemented:
 Multinational: Decentralized focus on local markets.
 Global: Centralized focus on standardization.
 International: Balanced focus on cooperation.
 Transnational: Integrated focus on global efficiency and local
responsiveness.
4. Obstacles to GIS implementation include lack of standardization, cultural
differences, diverse regulations, poor infrastructure, and skilled labour shortages.
5. Successful Implementation requires careful consideration of local needs, global
standards, and cooperative environments.

Practical Applications
 Companies like FedEx, Toyota, and SAP demonstrate the importance of GIS in
managing global operations.
 Understanding cultural and regulatory differences is crucial for designing effective
GIS.
 Tailoring systems to local infrastructure ensures smooth operation in diverse
regions.
Central Node:
Global Information Systems (GIS)

Branch 1: Reasons for Globalization

 Sub-Branch 1.1: Global Economy
 Customers demand integrated worldwide services.
 Expansion of global markets drives the need for GIS.
 Example: A U.S.-based shoe company procures leather in Italy, produces
uppers there, ships them to China for assembly, tests in Ireland, and sells in
the U.S.
 Sub-Branch 1.2: E-Business as a Driving Force
 Simplifies communication and improves business relationships.
 Offers new opportunities for consumers and businesses.
 Enables comparison shopping and reduces costs.
 Sub-Branch 1.3: Growth of the Internet
 As of March 2021, ~5.17 billion people worldwide were using the Internet.
 Highest growth occurred in Africa, lowest in North America.
 Internet access varies globally (e.g., slower/costlier in some regions).

Branch 2: Components of GIS

 Sub-Branch 2.1: Global Database
 Challenges:
 Different character sets (e.g., languages).
 Formats for phone numbers, postal codes, dates.
 Currency conversion.
 Solutions:
 Software like SAP provides tools for addressing these challenges.
 Sub-Branch 2.2: Information-Sharing Technologies
 Examples:
 Email.
 Remote data entry.
 Audio/video conferencing.
 Distributed databases.
 Importance:
 Facilitates real-time communication between headquarters and
subsidiaries.
 Supports global operations and decision-making.

Branch 3: Organizational Structures Using GIS

 Sub-Branch 3.1: Multinational Structure
 Decentralized production, sales, and marketing.
 Centralized financial management at the parent company.
 Subsidiaries operate independently but report to headquarters.
 Example: Nestlé uses different financial systems across subsidiaries.
 Sub-Branch 3.2: Global Structure
 Highly centralized information systems.
 Subsidiaries rely on headquarters for process and control decisions.
 Example: McDonald’s tailors’ products to local tastes but centralizes key
processes.
 Sub-Branch 3.3: International Structure
 Operates like a multinational but with more dependence on headquarters for
process and production decisions.
 Regular exchange of IT personnel encourages joint development of
applications.
 Example: Caterpillar Corporation fosters cooperation between locations.
  Sub-Branch 3.4: Transnational Structure
 Shared authority and responsibility across regions.
 No specific headquarters; operates across multiple countries.
 Combines global efficiency with local responsiveness.
 Example: Citigroup, Sony, and Ford aim for this structure.

Branch 4: Offshore Outsourcing

 Definition: Choosing an outsourcing firm in another country to provide needed
services or products.
 Common Tasks Outsourced:
 Medical diagnosis.
 Tax preparation.
 Programming, application development, web site development.
 Help desk/user support, quality assurance/software testing.
 Benefits:
 Cost savings.
 Access to specialized skills.
 Improved efficiency.

Branch 5: Obstacles to Using GIS

 Sub-Branch 5.1: Lack of Standardization
 Differences in time zones, taxes, language, and work habits.
 Too much standardization reduces flexibility in responding to local
preferences.
 Solution: Balance international standards with modularization and
customization.
 Sub-Branch 5.2: Cultural Differences
 Attitudes toward technology vary by culture.
 Images or content acceptable in one culture may offend others.
 Example: Last-minute reservations may work in some cultures but not in
others.
 Solution: Education and training to address cultural sensitivities.
 Sub-Branch 5.3: Diverse Regulatory Practices
 Policies on business practices and technology use differ by country.
 Some countries restrict hardware/software imports or censor parts of the
Web.
 Example: China blocks social media platforms like Twitter.
 Solution: Adopt open-source systems where possible.
 Sub-Branch 5.4: Poor Telecommunication Infrastructures
 Varying levels of infrastructure quality affect system performance.
 Example: In Egypt, slower speeds and less reliability compared to the U.S.
 Solution: Tailor systems to match local infrastructure capabilities.
 Sub-Branch 5.5: Lack of Skilled Analysts and Programmers
 Shortage of qualified IT professionals in many regions.
 Training programs can help bridge the skills gap.
 Example: India has become a top IT outsourcing country due to its skilled
workforce.

Branch 6: Implementation of GIS

 Key Factors:
 Identify business opportunities in the global marketplace.
 Justify the investment in GIS resources.
 Screen personnel for technical and business expertise.
 Coordinate migration from old systems to new ones.
 Challenges:
  Integration of diverse systems.
 Support and maintenance issues across borders.

Branch 7: Case Studies

 Case Study 7.1: FedEx
 Tools:
 COSMOS: Tracks packages from pickup to delivery.
 Command & Control: Weather-assisted logistics for efficient delivery.
 FedEx Global Trade Manager: Assists customers with international
shipping.
 INTrade: Connects FedEx with brokers for electronic document
exchange.
 Case Study 7.2: Toyota Motor Company
 Uses GIS for JIT (Just-In-Time) inventory management.
 Dealer Daily System: Centralized data centre for dealerships in the U.S.
 Vehicle Order Management (VOM): Reduces delivery times and improves
inventory management in Europe.

Branch 8: Supporting Technologies for GIS

 Sub-Branch 8.1: Communication Networks
 Bridges headquarters and subsidiaries.
 Requires consideration of telecommunication infrastructures in different
countries.
 Sub-Branch 8.2: Data Warehousing and Analytics
 Used by MNCs to analyse supply chain data.
 Example: Ports America uses RFID tags, GPS sensors, and optical character
recognition cameras.
 Sub-Branch 8.3: Cloud Computing
 Facilitates collaboration and data sharing across borders.
 Example: SAP offers cloud-based solutions for global operations.

Branch 9: Key Concepts

 Transborder Data Flow (TDF):
 Restricts what type of data can be captured and transmitted in foreign
countries.
 Example: GDPR in the EU imposes strict regulations on personal data
collection.
 Offshore Outsourcing:
 Benefits: Cost savings, access to specialized skills.
 Challenges: Cultural and regulatory differences.
 Cultural Differences:
 Impact on user interface design, content, and behaviour.
 Example: Photos of women dressed in certain ways may be acceptable in the
West but unacceptable in the Middle East.

Branch 10: Key Players

 SAP Corporation:
 Provides enterprise resource planning (ERP) software designed for global
use.
 Features: Multi-language support, currency conversion, in-memory analytics
(SAP-HANA).
 Toyota Motor Company:
 Implements GIS for JIT inventory management.
 Collaborates with Dell, Microsoft, and Verizon Communications.
 FedEx:
 Uses GIS for global logistics and supply chain management.
 Tools: COSMOS, Command & Control, Global Trade Manager.
Branch 11: Privacy and Legal Issues
 GDPR (General Data Protection Regulation):
 Protects EU citizens' personal data.
 Violators can be fined up to 4% of global annual revenue.
 Applies to companies regardless of location if they serve EU residents.
 Intellectual Property Laws:
 Enforcement varies by country.
 Example: High piracy rates in countries like Venezuela (88%) and Indonesia (
86%).
 Jurisdiction Issues:
 ISPs, content providers, and servers operate under different rules and
regulations.
 Example: Yahoo! was sued in France for selling Nazi memorabilia, which is
illegal there.

Branch 12: Summary

 Why Go Global?
 Global economy creates demand for integrated services.
 E-business simplifies communication and offers new opportunities.
 What is GIS?
 Works across national borders.
 Facilitates communication between headquarters and subsidiaries.
 Incorporates all technologies and applications found in typical information
systems.
 Four Types of Organizational Structures:
 Multinational: Decentralized operations, centralized finance.
 Global: Centralized control, standardized processes.
 International: Balances decentralization and centralization.
 Transnational: Shared authority and responsibility, combines global
efficiency with local responsiveness.
 Five Obstacles to GIS:
 Lack of standardization.
 Cultural differences.
 Diverse regulatory practices.
 Poor telecommunication infrastructures.
 Lack of skilled analysts and programmers.
INF1505 – Module 9
Globalization refers to the integration of
worldwide services and markets. It is
What is globalization, and why is it important because it creates customers
important for businesses? demanding integrated global services and
expands market reach.
A GIS works across national borders,
facilitates communication between
headquarters and subsidiaries in other
What is a global information system (GIS)? countries, and incorporates all
technologies and applications found in
typical information systems.

1. A global database.
What are two key components of a GIS? 2. Information-sharing technologies.

Offshore outsourcing involves choosing an

outsourcing firm in another country to
What is offshore outsourcing?
provide needed services or products.

Transborder data flow restricts what type

of data can be captured and transmitted
What is transborder data flow (TDF)?
in foreign countries.

1. Multinational structure.
2. Global structure.
What are four types of organizational
3. International structure.
structures used with GIS?
4. Transnational structure.

In a multinational structure, production,

sales, and marketing are decentralized,
What is a multinational structure? while financial management remains
centralized at the parent company.

A global structure uses highly centralized

information systems. Subsidiaries rely on
What is a global structure? headquarters for process and control
decisions.

An international structure operates like a

multinational corporation but with more
What is an international structure? dependence on headquarters for process
and production decisions.
 In a transnational structure, the parent
company and subsidiaries work together
to design policies, procedures, and
What is a transnational structure?
logistics. Authority and responsibility are
shared across regions.
1. Lack of standardization (time zones,
taxes, language, work habits).
2. Cultural differences.
3. Diverse regulatory practices.
What are five obstacles to using GIS? 4. Poor telecommunication
infrastructures.
5. Lack of skilled analysts and
programmers.

Global databases must handle different

character sets, formats for phone
Why is designing a global database more
numbers and postal codes, and currency
challenging than a domestic one?
conversion, which adds complexity.

SAP Corporation is a leading provider of

business software that supports multiple
What is SAP Corporation known for? languages and currencies, making it ideal
for global operations.

OSMOS is a computerized tracking system

that monitors every package from pickup
What is COSMOS in FedEx's GIS?
to delivery.

Command & Control is a satellite-to-

ground-level operations system that helps
What is the Command & Control system at
FedEx deliver packages efficiently despite
FedEx?
weather conditions.

 A global structure centralizes control

and relies heavily on headquarters.
 A multinational structure
What is the difference between a global
decentralizes production, sales, and
structure and a multinational structure?
marketing while keeping financial
management centralized.
1. GPS for real-time tracking.
2. RFID tags for inventory
What are three IT tools UPS might use in management.
global logistics? 3. Data warehouses for supply chain
analytics.
 Cultural differences affect attitudes
toward technology, content preferences,
What is the impact of cultural differences and behaviour. For example, photos
on GIS implementation? acceptable in one culture may offend
another.

SAP-HANA performs in-memory

calculations, delivering extremely fast
How does SAP-HANA improve business
response times for business analytics and
analytics?
predictive analysis.

Video conferencing enables real-time

communication across time zones and
What is the role of video conferencing in geographic boundaries, improving
global organizations? collaboration and decision-making in
global organizations.
Multiple Choice Questions
1. What is a major factor in the development of global information systems?
 A) Local markets
 B) Global markets
 C) Domestic markets
 D) Regional markets
2. Which company is mentioned as having more than 58% of its revenue
from international sources?
 A) McDonald’s
 B) Procter & Gamble
 C) IBM
 D) HP
3. What does e-business add to traditional business?
 A) Flexibility through networks
 B) Decreased communication
 C) Reduced opportunities
 D) Increased costs
4. According to the Miniwatts Marketing Group, which region saw the
highest growth in Internet users from 2000 to 2021?
 A) North America
 B) Africa
 C) Asia
 D) Europe
5. What language is not listed among the top seven most-used languages
on the Internet?
 A) English
 B) Portuguese
 C) Arabic
 D) Korean
6. What is one benefit of mobile computing and apps in economically
developing nations?
 A) Providing basic banking services
 B) Increasing labour costs
 C) Decreasing Internet access
 D) Reducing agricultural production
7. A global information system (GIS) facilitates communication between
what entities?
 A) Subsidiaries only
 B) Headquarters and subsidiaries
 C) Competitors
 D) Customers only
8. What is a key component of a GIS?
 A) Global database
 B) Local database
 C) Single-user database
 D) Desktop applications
9. Which structure has highly centralized information systems?
 A) Multinational structure
 B) Global structure
 C) International structure
 D) Transnational structure
10. Which company uses a GIS to integrate inventory information
worldwide?
 A) Caterpillar Corporation
 B) General Motors
 C) Nestlé
  D) FedEx
11. What is an example of an application that supports offshore
outsourcing?
 A) Medical diagnosis
 B) Manual data entry
 C) In-person customer support
 D) Physical product delivery
12. Which obstacle can hinder the success of a GIS?
 A) Lack of standardization
 B) Uniform regulatory practices
 C) Excessive skilled analysts
 D) High telecommunication infrastructures
13. What issue regarding jurisdiction can arise with a GIS?
 A) Consistent rules across countries
 B) Different rules and regulations per country
 C) No legal issues
 D) Identical privacy laws globally
14. What does SAP ERP 7.0 include?
 A) Comprehensive Web-enabled products
 B) Single-language support
 C) Limited currency options
 D) Non-global operations
15. What aspect of Toyota's operations benefits from global networks?
 A) JIT inventory management
 B) Decreased communication
 C) Increased waste
 D) Manual processes
16. What role does the Dealer Daily system play for Toyota?
 A) Centralized data centre for dealers
 B) Decreased sales focus
 C) Increased paperwork
 D) Slower financing responses
17. What function does Vehicle Order Management (VOM) serve for
Toyota Motor Europe?
 A) Increases delivery time
 B) Reduces operating costs
 C) Increases inventory inefficiency
 D) Decreases customer satisfaction
18. How many countries does VOM impact?
 A) 5
 B) 10
 C) 13
 D) 20
19. What technology assists MNCs with logistics?
 A) Optical character recognition cameras
 B) Manual tracking
 C) Decreased IT usage
 D) No technological assistance
20. What challenge do MNCs face regarding intellectual property?
 A) Piracy and theft
 B) Increased protection
 C) Uniform global laws
 D) No challenges
True or False Questions
1. Globalization has become an important factor in purchasing and the
supply chain.
 A) True
 B) False
2. The highest Internet growth from 2000 through 2021 occurred in North
America.
 A) True
 B) False
3. Transborder data flow restricts what type of data can be captured and
transmitted in foreign countries.
 A) True
 B) False
4. Multinational organizations operate across national borders.
 A) True
 B) False
5. Well-established telecommunication infrastructures are an obstacle to
using global information systems.
 A) True
 B) False
6. Amazon is one of the key players for building and launching high-speed
Internet satellites.
 A) True
 B) False
7. Offshore outsourcing increases with the use of GISs.
 A) True
 B) False
8. Cultural differences do not affect the implementation of GISs.
 A) True
 B) False
9. SAP products have been designed for use with multiple languages and
currencies.
 A) True
 B) False
10. The Internet simplifies communication and improves business
relationships.
 A) True
 B) False
11. Mobile apps cannot provide basic social services in economically
developing nations.
 A) True
 B) False
12. Standardization can impede the development of a cohesive GIS.
 A) True
 B) False
13. Time zones pose no difficulties in managing a GIS.
 A) True
 B) False
14. Diverse regulatory practices hinder the integration process of GISs.
 A) True
 B) False
15. SAP offers software for enterprise resource planning.
 A) True
 B) False
16. Toyota's JIT system requires suppliers to interface with Toyota's
operations system.
 A) True
 B) False
 17. Dealer Daily system allows dealers to spend less time on
paperwork.
 A) True
 B) False
18. Vehicle Order Management reduces delivery time to customers.
 A) True
 B) False
19. Information technology cannot assist with environmental challenges
faced by MNCs.
 A) True
 B) False
20. RFIDs, GPSs, and QR codes improve the efficiency of supply chains.
 A) True
 B) False

Fill in the Missing Word Questions

1. The global economy is creating customers who demand integrated ___________
services.
2. E-business builds on the advantages and structures of ___________ business.
3. As of March 2021, there were approximately ___________ billion worldwide Internet
users.
4. A ___________ information system (GIS) works across national borders.
5. Control consists of using managerial power to ensure adherence to the
organization's ___________.
6. Coordination requires a ___________ architecture for data.
7. With a GIS in place, an international company can increase control over its
___________.
8. A GIS must be capable of supporting complex ___________ decisions.
9. Managing global operations requires considering potential conflicts between the
governments of the ___________ where the company is based.
10. The first four requirements of a GIS are classified as ___________.
11. An organization must identify its business opportunities in the ___________
marketplace.
12. Information-sharing technologies are among the major components of a
successful ___________.
13. Poor telecommunication infrastructures can be an obstacle to using
___________.
14. SAP includes upgrades for global aspects of ___________.
15. Offshore outsourcing is an alternative for developing ___________.
16. Time zones can also pose difficulties in managing a ___________.
17. Jurisdiction issues regarding the contents of a GIS can be ___________.
18. SAP-HANA is used for ___________ business analytics.
19. Cultural differences in values, attitudes, and behaviours play an important
role in using ___________.
20. The Internet can simplify communication, improve business relationships,
and offer new ___________.
Answers
Multiple Choice
1. B
2. A
3. A
4. B
5. D
6. A
7. B
8. A
9. B
10. B
11. A
12. A
13. B
14. A
15. A
16. A
17. B
18. C
19. A
20. A
True or False
1. A
2. B
3. A
4. A
5. B
6. A
7. A
8. B
9. A
10. A
11. B
12. A
13. B
14. A
15. A
16. A
17. A
18. A
19. B
20. A
Fill in the Missing Word
1. worldwide
2. traditional
3. 5.17
4. global
5. goals
6. decentralized
7. subsidiaries
8. global
9. country
10. operational
11. global
12. GIS
13. GIS
14. information systems
15. information systems
16. GIS
17. challenging
18. in-memory
19. GISs
20. opportunities