What is Globalization?
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What is Globalization?

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Which of the following is NOT a characteristic of a global organization?

  • Operates solely within one country (correct)
  • Integrates economies
  • Earns foreign exchange in multiple currencies
  • High sensitivity towards local laws and regulations

    • Which factor is considered a major driver of international business?

  • Scientific discoveries
  • Personal relationships
  • Technological advancements (correct)
  • Cultural trends

    • What aspect does globalization primarily focus on?

  • Political isolation
  • Local competition
  • Cultural independence
  • Economic integration (correct)

    • Which of the following is NOT a challenge posed by global information systems?

    <p>Access to domestic markets only</p> Signup and view all the answers

    What is a key consideration when developing international information systems?

    <p>Understanding multi-language and multi-cultural contexts</p> Signup and view all the answers

    What are the main aspects of globalization mentioned?

    <p>Economic, Cultural, Political</p> Signup and view all the answers

    Which region had the highest internet user percentage by 2019?

    <p>Europe</p> Signup and view all the answers

    What has been a significant impact of the growth of international trade?

    <p>Radical alteration of domestic economies</p> Signup and view all the answers

    What should be considered when developing an International Information Systems Architecture?

    <p>Management Issues</p> Signup and view all the answers

    Which strategy is mentioned as part of corporate strategy for global competition?

    <p>Top-Down Strategy</p> Signup and view all the answers

    What is an example of a product with a global supply chain?

    <p>Apple iPhone</p> Signup and view all the answers

    Which of the following is considered a challenge in the global environment?

    <p>Multi-Cultural Aspects</p> Signup and view all the answers

    What defines the technology platform in global business strategies?

    <p>Diversity of Technology Utilized</p> Signup and view all the answers

    What is the primary reason for outsourcing support and maintenance to specialized IT organizations?

    <p>Cost-saving</p> Signup and view all the answers

    What term is commonly used to refer to the new locations developed for outsourcing IT services?

    <p>Off-shore Development Centers</p> Signup and view all the answers

    Which activity is primarily involved in the 'Knowledge Transition' stage?

    <p>Transferring knowledge from the implementation team to the support team</p> Signup and view all the answers

    What type of documentation is essential to hand over during the project transition?

    <p>Project documentation</p> Signup and view all the answers

    Which of the following is NOT considered a part of Human Resource Transition activities?

    <p>Employee training programs</p> Signup and view all the answers

    Which knowledge is included in the Knowledge Transfer phase?

    <p>Client’s business process knowledge</p> Signup and view all the answers

    What is the key focus of the Transition process in IT outsourcing?

    <p>Managing change in IT systems</p> Signup and view all the answers

    Which of the following documents is NOT typically part of the project documentation transition?

    <p>Market Analysis Reports</p> Signup and view all the answers

    What is one of the key responsibilities of system administration?

    <p>Managing Job Schedules</p> Signup and view all the answers

    Which activity is part of the Change Management process?

    <p>Applying regular patches</p> Signup and view all the answers

    What is the purpose of root cause analysis in end user application support?

    <p>To identify the underlying issue of a problem</p> Signup and view all the answers

    Which of the following is NOT a component of Continuous Improvement?

    <p>User Recruitment</p> Signup and view all the answers

    What is a primary consideration during the transition to outsourcing?

    <p>Cutover Readiness Assessment</p> Signup and view all the answers

    What is involved in the first stage of knowledge transfer during development activities?

    <p>Perform work shadowing/classroom education</p> Signup and view all the answers

    What does the term 'steady state' refer to in transition activities?

    <p>A phase with continuous maintenance</p> Signup and view all the answers

    Which of the following is an activity aimed at improving knowledge management?

    <p>Evaluating learning effectiveness</p> Signup and view all the answers

    Which type of organizational structure facilitates equal participation of all units?

    <p>Coordinated</p> Signup and view all the answers

    What is a defining characteristic of transnational corporations compared to multinational corporations?

    <p>Country-specific controls</p> Signup and view all the answers

    Which global strategy is exemplified by companies like IBM?

    <p>Multinational</p> Signup and view all the answers

    Which type of systems configuration entails that each foreign unit designs its own solutions and systems?

    <p>Decentralized</p> Signup and view all the answers

    What is the first step to developing a global company according to the outlined strategy?

    <p>Organize value-adding activities along lines of comparative advantage</p> Signup and view all the answers

    Which problem might arise from having separate IT systems in foreign divisions?

    <p>Compatibility issues among systems</p> Signup and view all the answers

    Which of the following best describes a duplicated systems configuration?

    <p>Development at home with operations in foreign locations</p> Signup and view all the answers

    In a typical scenario of a traditional multinational company, where is strategic management typically based?

    <p>At the world headquarters in the home country</p> Signup and view all the answers

    Study Notes

    What is Globalization?

    • Globalization is the process of integrating businesses, people, and governments across the world.
    • It's primarily an economic process with social and cultural aspects.
    • There are three main types of globalization: economic, cultural, and political.

    Drivers of International Business

    • Transport: Advancements from steam engines to jet engines have facilitated global trade.
    • Communication: The internet and telecommunications have revolutionized communication and business connections.
    • Political: International agreements and policies influence global business.
    • Economic: Global economic conditions and trade agreements drive international business.
    • Social: Cultural trends and consumer preferences impact international trade.
    • Technological: Computing power, cloud computing, video conferencing, analytics, and IT security enable globalization.
    • Legal: International legal frameworks and compliance requirements impact businesses operating globally.

    Characteristics of a Global Organization

    • Large-scale operations: Global organizations operate on a vast scale.
    • Multiple currencies: They earn foreign exchange in various currencies.
    • Economic integration: They integrate economies across different countries.
    • Numerous middlemen: Extensive supply chains involve multiple intermediaries.
    • High risk: Factors like trade conflicts pose significant risks.
    • International restrictions: They face regulatory challenges.
    • Compliance with local laws: They need to comply with local laws and regulations.
    • Global political alignments: They navigate global political alliances and partnerships.
    • Multilingual and multicultural: They operate in multiple languages and cultures.

    Challenges of Global Information Systems

    • Cultural differences: Global teams need to manage cultural differences in communication and work styles.
    • Data security and privacy: Protecting sensitive data across borders is crucial.
    • Integration of systems: Merging different systems and platforms used by global subsidiaries presents challenges.
    • Language barriers: Communication across different languages poses a hurdle.
    • Time zones: Coordinating work across different time zones requires careful planning.

    International Information Systems Architecture

    • Understanding the global environment: Analyzing business drivers, inhibitors, and cultural aspects.
    • Developing a corporate global strategy: Defining strategies for global expansion.
    • Establishing organizational structure: Designing a suitable structure to manage global operations.
    • Implementing management strategies: Managing change, processes, and reengineering efforts.
    • Choosing technology platforms: Selecting suitable systems and infrastructure for global operations.

    Global Strategies and Business Organization

    • Centralized: Headquartered in the home country
    • Decentralized/Dispersed: Operations in local foreign units
    • Coordinated: All units participate equally

    Global Strategies

    • Domestic exporter: Focused on exporting from the home country (e.g., Tata Motors).
    • Multinational: Multiple operations in different countries with centralized management (e.g., IBM).
    • Franchisers: Granting franchises in other countries (e.g., McDonalds).
    • Transnational: Decentralized operations with country-specific controls and integrated global strategy (e.g., Coca-Cola).

    Global Systems to Fit the Strategy

    • Centralized: Development and operations occur in the home base.
    • Duplicated: Development is in the home base, but operations are managed by foreign units.
    • Decentralized: Each foreign unit develops its own solutions.
    • Networked: Development and operations are coordinated across units.

    Reorganizing the Business

    • Comparative advantage: Locating functions where they can be performed most efficiently.
    • System units at all levels: Establishing systems units at regional, national, and international levels.
    • Global CIO: Designating a global CIO to oversee international systems.

    Global System Strategy: Offshoring

    • Outsource support and new development to organizations in lower-cost locations, known as "offshore development centers".
    • Commonly used in IT domain, with India and other countries being popular offshoring locations.

    Transition Activities (Outsourcing/Transitioning)

    • Knowledge transfer: Sharing business processes, application knowledge, and configuration logic.
    • Documentation: Handing over project documents, specifications, and configurations.
    • Human resource transition: Managing workforce transfers, role changes, and compensation.

    Typical Support Activities for Transitioning

    • System Administration: Managing databases, system performance, and technical infrastructure.
    • Change Management: Implementing change control procedures, testing, and transporting changes.
    • End user application support: Providing ongoing support, resolving issues, and root-cause analysis.
    • Knowledge management: Providing training, evaluating learning effectiveness, and documenting lessons.
    • Continuous Improvement: Planning for improvements, realizing value, and measuring business benefits.

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    Description

    This quiz explores the concept of globalization, including its definition, types, and the various drivers of international business. Dive into the economic, cultural, and political aspects that shape our globalized world. Understand how transport, communication, and technology facilitate international trade.

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