TEST BANK
INFORMATION SYSTEMS TODAY: MANAGING THE
DIGITAL WORLD
1
Copyright © 2025 Pearson Education, Ltd.
, TABLE OF CONTENTS
1. Managing In The Digital World
2. Gaining Competitive Advantage Through Information Systems
3. Managing The Information Systems Infrastructure And Services
4. Enabling Business-To-Consumer Electronic Commerce
5. Enhancing Organizational Communication And Collaboration Using Social
Media
6. Enhancing Business Intelligence Using Big Data And Analytics
7. Enhancing Business Processes Using Enterprise Information Systems
8. Strengthening Business-To-Business Relationships Via Supply Chain And
Customer Relationship Management
9. Developing And Acquiring Information Systems
10. Securing Information Systems
11. Technology Briefing Foundations Of Information Systems Infrastructure
2
Copyright © 2025 Pearson Education, Ltd.
,Information Systems Today, 9TH Global Edition (Valacich)
Chapter 1 Managing In The Digital World
1) Identify A True Statement About The Function Of Knowledge Workers.
A) They Use Knowledge To Perform Their Jobs But Do Not Create Knowledge.
B) They Create, Modify, And/Or Synthesize Knowledge As A Fundamental Part Of Their Jobs.
C) They Lack The Ability To Solve Non-Routine Problems At Work.
D) They Modify Knowledge Created By Others But Do Not Create Knowledge Themselves.
E) They Work In A Monotonous Workplace And Lack
Innovation. Answer: B
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
2) Which Of The Following Predictions Made By Peter Drucker Is True?
A) Knowledge Workers Have Lesser Bargaining Power Than Workers In Other Industries.
B) Knowledge Workers Lack Valuable Real-World Skills.
C) Knowledge Workers Lack Reliance On Formal Education.
D) Knowledge Workers Are Continually Learning How To Do Their Jobs Better.
E) Knowledge Workers Are Paid Less In Comparison With Their Prior Industrial
Counterparts. Answer: D
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
3) Who Among The Following Coined The Term "Knowledge Worker"?
A) Peter Drucker
B) Alvin Toffler
C) Johannes Gutenberg
D) Thomas L. Friedman
E) Mark Zuckerberg
Answer: A
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
3
Copyright © 2025 Pearson Education, Ltd.
,4) Which Of The Following Occurred When Alvin Toffler's "Third Wave" Gained Speed?
A) Society Moved From A Predominantly Agrarian Culture To The Urbanized Machine Age.
B) Occupations Changed To Accommodate The Mechanized Society.
C) The Ability To Perform Repetitive Tasks Became A Quality To Be Instilled And Valued.
D) Individuals Shifted From Handcrafting Items For Sale To Working In Factories.
E) Information Became The Currency Of The
Realm. Answer: E
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
5) The Various Services Offered By Google, Such As Gmail (E-Mail), Google Drive
(Word Processing), Or Google Calendar, Are Good Examples Of .
A) Cloud Computing
B) Computer Assembling
C) Data Mining
D) Systems Integration
E) Internetworking
Answer: A
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
6) Which Of The Following Terms Means "Knowing How To Use A Computer"?
A) Information Security
B) Cloud Computing
C) Computer Literacy
D) Computer Compatibility
E) Collaborative
Thinking Answer: C
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
4
Copyright © 2025 Pearson Education, Ltd.
,7) The Ability To Independently Learn New Technologies As They Emerge And Assess Their
Impact On Your Work And Life Is Called .
A) Computer Networking
B) Computer Adaptation
C) Computer Fluency
D) Computer Compatibility
E) Computer
Assembling Answer:
C
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
8) Advances In Cloud Computing (Think Gmail, Evernote, Or Dropbox) Allow For
Accessing E- Mails, Files, Notes, And The Like From Different Devices, Enhancing
Portability And Mobility In Computing.
Answer: TRUE
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
9) The Use Of Nearly Any Information Technology Or System To Support Every Part Of The
Business Is Known As E-Business.
Answer: TRUE
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
10) The Trend Of Using One's Own Device For Communicating In The Workplace Is An
Example Of Consumerization Of IT.
Answer: TRUE
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
5
Copyright © 2025 Pearson Education, Ltd.
,11) Discuss Peter Drucker's Predictions About Knowledge Workers And The Knowledge
Society. Answer: In 1959, Peter Drucker Predicted The Rise In The Importance Of
Information And Of Information Technology (IT) And Coined The Term Knowledge
Worker. Knowledge Workers Are Professionals Who Are Relatively Well Educated And
Who Create, Modify, And/Or Synthesize Knowledge As A Fundamental Part Of Their Jobs.
Drucker's Predictions About Knowledge Workers Were Very Accurate. As He Predicted, They
Are Generally Paid Better Than Their Prior Agricultural And Industrial Counterparts; They Rely
On And Are Empowered By Formal Education, Yet They Often Also Possess Valuable Real-
World Skills; They Are Continually Learning How To Do Their Jobs Better; They Have Much
Better Career Opportunities And Far More Bargaining Power Than Workers Ever Had Before;
They Make Up About A Quarter Of The Workforce In The United States And In Other
Developed Nations; And Their Numbers Are Rising Quickly.
Drucker Also Predicted That, With The Growth In The Number Of Knowledge Workers And
With Their Rise In Importance And Leadership, A Knowledge Society Would Emerge. He
Reasoned That, Given The Importance Of Education And Learning To Knowledge Workers
And The Firms That Need Them, Education Would Become The Cornerstone Of The
Knowledge Society. Possessing Knowledge, He Argued, Would Be As Important As
Possessing Land, Labor, Or Capital.
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
6
Copyright © 2025 Pearson Education, Ltd.
,12) In His Book The Third Wave, Futurist Alvin Toffler Describes Three Distinct Phases, Or
"Waves Of Change," That Have Taken Place In The Past Or Are Presently Taking Place Within
The World's Civilizations. Discuss The Characteristics Of These Phases.
Answer: The First Wave-A Civilization Based On Agriculture And Handwork-Was A
Comparatively Primitive Stage That Began As Civilizations Formed And Lasted For Thousands
Of Years.
The Second Wave Of Change-The Industrial Revolution-Overlapped With The First Wave. The
Industrial Revolution Began In Great Britain Toward The End Of The Eighteenth Century And
Continued Over The Next 150 Years, Moving Society From A Predominantly Agrarian Culture
To The Urbanized Machine Age. Steel Mills, Textile Factories, And Eventually Automobile
Assembly Lines Replaced Farming And Handwork As The Principal Source Of Family Income.
As The Industrial Revolution Progressed, Not Only Did Occupations Change To Accommodate
The Mechanized Society, But So Did Educational, Business, Social, And Religious Institutions.
On An Individual Level, Punctuality, Obedience, And The Ability To Perform Repetitive Tasks
Became Qualities To Be Instilled And Valued In Children In Public Schools And, Ultimately, In
Workers.
In A Much Shorter Period Of Time Than It Took For Civilization To Progress Past The First
Wave, Societies Worldwide Moved From The Machine Age Into The Information Age-A Period
Of Change Toffler Has Dubbed The "Third Wave." As The Third Wave Gained Speed,
Information Became The Currency Of The Realm And A Tremendous Acceleration Occurred In
The Amount And Kind Of Information Available To Populations. Now Knowledge Could Be
Imparted In Written Form And Sometimes Came From Distant Locations. Information Could Be
Saved, Absorbed, Debated, And Written About In Publications, Thus Adding To The Exploding
Data Pool.
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
13) Which Of The Following Is An Economic Change Brought About By Globalization
Enabled By Information Technology?
A) Increase In The Frequency Of Worldwide Fads And Phenomena
B) Development Of Low-Cost Computing Platforms
C) Availability Of Low-Cost Communication Systems
D) Increase In The Outsourcing Of Labor
E) Decentralization Of
Organizations Answer: D
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
7
Copyright © 2025 Pearson Education, Ltd.
,14) Identify A Technological Change Brought About By Globalization Enabled By
Information Technology.
A) Increase In The Frequency Of International Travel
B) Increase In The Levels Of Immigration
C) Enforcement Of Global Patent And Copyright Laws
D) Decrease In The Frequency Of Worldwide Fads
E) Decentralization Of
Organizations Answer: C
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
15) Which Of The Following Is A Cultural Change Brought About By Globalization
Enabled By Information Technology?
A) The Enforcement Of Global Patent And Copyright Laws
B) The Availability Of Low-Cost Communication Systems
C) The Development Of Low-Cost Computing Platforms
D) The Frequency Of Worldwide Fads And Phenomena
E) Decrease In The Outsourcing Of
Labor Answer: D
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
16) Identify A Key Factor Of Globalization.
A) Evolution Of Technology
B) Anchor Point Milestones
C) Concept Development Projects
D) Timeboxing Strategies
E) External Interface
Requirements Answer: A
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
8
Copyright © 2025 Pearson Education, Ltd.
,17) Identify A True Statement About The Impact Of Globalization.
A) It Led To A Tremendous Decrease In Prices For Computing Devices.
B) It Led To A Tremendous Increase In Prices For Computing Devices.
C) It Led To A Tremendous Decrease In Processing Power.
D) It Led To A Tremendous Decrease In The Creation Of Automated Tools.
E) It Led To A Tremendous Increase In Communication
Costs. Answer: A
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
18) Which Of The Following Best Explains The Process Of Moving Business Processes Or
Tasks To Another Company?
A) Offshoring
B) Liquidating
C) Cloud Computing
D) Downsizing
E) Outsourcin
g Answer: E
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
19) Which Of The Following Can Be Cited As An Example Of Outsourcing?
A) Microsoft Hands Over Its Customer Service Function To Convergys, Located In India.
B) Volkswagen Acquires A Steel Manufacturing Plant To Reduce Its Overall Production Costs.
C) Dell Sources Computer Parts From Suppliers Located In Russia.
D) Audi Starts A Manufacturing Facility In China To Take Advantage Of Low Labor Costs.
E) P&G Acquires A Retail Outlet To Reduce Its Distribution
Costs. Answer: A
AACSB: Analytical Thinking
Difficulty: Difficult
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Application
9
Copyright © 2025 Pearson Education, Ltd.
, 20) Aircraft Manufacturer Boeing Designed Its New 787 Dreamliner Aircraft In Russia Making
Use Of The Availability Of Highly Skilled Aeronautical Engineers. Identify This Strategy.
A) Offshoring
B) Outsourcing
C) Liquidating
D) Franchising
E) Importing
Answer: A
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
21) In Order To Take Advantage Of The High Quality Talent Pool, Ernst & Young Sets Up
Operations In The Philippines And Moves A Part Of Its Tax Services To Its New Facility.
Identify This Strategy.
A) Outsourcing
B) Franchising
C) Offshoring
D) Importing
E) Liquidatin
g Answer: C
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Application
22) Outsourcing Has Seen A Huge Increase Because Of The .
A) Increase In Decentralization
B) Increase In The Use Of Cloud Computing
C) Increase In Advertising Costs
D) Decrease In Telecommunication Costs
E) Decrease In The Cost Of Raw
Materials Answer: D
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
10
Copyright © 2025 Pearson Education, Ltd.
INFORMATION SYSTEMS TODAY: MANAGING THE
DIGITAL WORLD
1
Copyright © 2025 Pearson Education, Ltd.
, TABLE OF CONTENTS
1. Managing In The Digital World
2. Gaining Competitive Advantage Through Information Systems
3. Managing The Information Systems Infrastructure And Services
4. Enabling Business-To-Consumer Electronic Commerce
5. Enhancing Organizational Communication And Collaboration Using Social
Media
6. Enhancing Business Intelligence Using Big Data And Analytics
7. Enhancing Business Processes Using Enterprise Information Systems
8. Strengthening Business-To-Business Relationships Via Supply Chain And
Customer Relationship Management
9. Developing And Acquiring Information Systems
10. Securing Information Systems
11. Technology Briefing Foundations Of Information Systems Infrastructure
2
Copyright © 2025 Pearson Education, Ltd.
,Information Systems Today, 9TH Global Edition (Valacich)
Chapter 1 Managing In The Digital World
1) Identify A True Statement About The Function Of Knowledge Workers.
A) They Use Knowledge To Perform Their Jobs But Do Not Create Knowledge.
B) They Create, Modify, And/Or Synthesize Knowledge As A Fundamental Part Of Their Jobs.
C) They Lack The Ability To Solve Non-Routine Problems At Work.
D) They Modify Knowledge Created By Others But Do Not Create Knowledge Themselves.
E) They Work In A Monotonous Workplace And Lack
Innovation. Answer: B
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
2) Which Of The Following Predictions Made By Peter Drucker Is True?
A) Knowledge Workers Have Lesser Bargaining Power Than Workers In Other Industries.
B) Knowledge Workers Lack Valuable Real-World Skills.
C) Knowledge Workers Lack Reliance On Formal Education.
D) Knowledge Workers Are Continually Learning How To Do Their Jobs Better.
E) Knowledge Workers Are Paid Less In Comparison With Their Prior Industrial
Counterparts. Answer: D
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
3) Who Among The Following Coined The Term "Knowledge Worker"?
A) Peter Drucker
B) Alvin Toffler
C) Johannes Gutenberg
D) Thomas L. Friedman
E) Mark Zuckerberg
Answer: A
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
3
Copyright © 2025 Pearson Education, Ltd.
,4) Which Of The Following Occurred When Alvin Toffler's "Third Wave" Gained Speed?
A) Society Moved From A Predominantly Agrarian Culture To The Urbanized Machine Age.
B) Occupations Changed To Accommodate The Mechanized Society.
C) The Ability To Perform Repetitive Tasks Became A Quality To Be Instilled And Valued.
D) Individuals Shifted From Handcrafting Items For Sale To Working In Factories.
E) Information Became The Currency Of The
Realm. Answer: E
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
5) The Various Services Offered By Google, Such As Gmail (E-Mail), Google Drive
(Word Processing), Or Google Calendar, Are Good Examples Of .
A) Cloud Computing
B) Computer Assembling
C) Data Mining
D) Systems Integration
E) Internetworking
Answer: A
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
6) Which Of The Following Terms Means "Knowing How To Use A Computer"?
A) Information Security
B) Cloud Computing
C) Computer Literacy
D) Computer Compatibility
E) Collaborative
Thinking Answer: C
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
4
Copyright © 2025 Pearson Education, Ltd.
,7) The Ability To Independently Learn New Technologies As They Emerge And Assess Their
Impact On Your Work And Life Is Called .
A) Computer Networking
B) Computer Adaptation
C) Computer Fluency
D) Computer Compatibility
E) Computer
Assembling Answer:
C
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
8) Advances In Cloud Computing (Think Gmail, Evernote, Or Dropbox) Allow For
Accessing E- Mails, Files, Notes, And The Like From Different Devices, Enhancing
Portability And Mobility In Computing.
Answer: TRUE
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
9) The Use Of Nearly Any Information Technology Or System To Support Every Part Of The
Business Is Known As E-Business.
Answer: TRUE
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
10) The Trend Of Using One's Own Device For Communicating In The Workplace Is An
Example Of Consumerization Of IT.
Answer: TRUE
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
5
Copyright © 2025 Pearson Education, Ltd.
,11) Discuss Peter Drucker's Predictions About Knowledge Workers And The Knowledge
Society. Answer: In 1959, Peter Drucker Predicted The Rise In The Importance Of
Information And Of Information Technology (IT) And Coined The Term Knowledge
Worker. Knowledge Workers Are Professionals Who Are Relatively Well Educated And
Who Create, Modify, And/Or Synthesize Knowledge As A Fundamental Part Of Their Jobs.
Drucker's Predictions About Knowledge Workers Were Very Accurate. As He Predicted, They
Are Generally Paid Better Than Their Prior Agricultural And Industrial Counterparts; They Rely
On And Are Empowered By Formal Education, Yet They Often Also Possess Valuable Real-
World Skills; They Are Continually Learning How To Do Their Jobs Better; They Have Much
Better Career Opportunities And Far More Bargaining Power Than Workers Ever Had Before;
They Make Up About A Quarter Of The Workforce In The United States And In Other
Developed Nations; And Their Numbers Are Rising Quickly.
Drucker Also Predicted That, With The Growth In The Number Of Knowledge Workers And
With Their Rise In Importance And Leadership, A Knowledge Society Would Emerge. He
Reasoned That, Given The Importance Of Education And Learning To Knowledge Workers
And The Firms That Need Them, Education Would Become The Cornerstone Of The
Knowledge Society. Possessing Knowledge, He Argued, Would Be As Important As
Possessing Land, Labor, Or Capital.
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
6
Copyright © 2025 Pearson Education, Ltd.
,12) In His Book The Third Wave, Futurist Alvin Toffler Describes Three Distinct Phases, Or
"Waves Of Change," That Have Taken Place In The Past Or Are Presently Taking Place Within
The World's Civilizations. Discuss The Characteristics Of These Phases.
Answer: The First Wave-A Civilization Based On Agriculture And Handwork-Was A
Comparatively Primitive Stage That Began As Civilizations Formed And Lasted For Thousands
Of Years.
The Second Wave Of Change-The Industrial Revolution-Overlapped With The First Wave. The
Industrial Revolution Began In Great Britain Toward The End Of The Eighteenth Century And
Continued Over The Next 150 Years, Moving Society From A Predominantly Agrarian Culture
To The Urbanized Machine Age. Steel Mills, Textile Factories, And Eventually Automobile
Assembly Lines Replaced Farming And Handwork As The Principal Source Of Family Income.
As The Industrial Revolution Progressed, Not Only Did Occupations Change To Accommodate
The Mechanized Society, But So Did Educational, Business, Social, And Religious Institutions.
On An Individual Level, Punctuality, Obedience, And The Ability To Perform Repetitive Tasks
Became Qualities To Be Instilled And Valued In Children In Public Schools And, Ultimately, In
Workers.
In A Much Shorter Period Of Time Than It Took For Civilization To Progress Past The First
Wave, Societies Worldwide Moved From The Machine Age Into The Information Age-A Period
Of Change Toffler Has Dubbed The "Third Wave." As The Third Wave Gained Speed,
Information Became The Currency Of The Realm And A Tremendous Acceleration Occurred In
The Amount And Kind Of Information Available To Populations. Now Knowledge Could Be
Imparted In Written Form And Sometimes Came From Distant Locations. Information Could Be
Saved, Absorbed, Debated, And Written About In Publications, Thus Adding To The Exploding
Data Pool.
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.1: Describe The Characteristics Of The Digital World And The Advent Of The
Information Age.
Classification: Concept
13) Which Of The Following Is An Economic Change Brought About By Globalization
Enabled By Information Technology?
A) Increase In The Frequency Of Worldwide Fads And Phenomena
B) Development Of Low-Cost Computing Platforms
C) Availability Of Low-Cost Communication Systems
D) Increase In The Outsourcing Of Labor
E) Decentralization Of
Organizations Answer: D
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
7
Copyright © 2025 Pearson Education, Ltd.
,14) Identify A Technological Change Brought About By Globalization Enabled By
Information Technology.
A) Increase In The Frequency Of International Travel
B) Increase In The Levels Of Immigration
C) Enforcement Of Global Patent And Copyright Laws
D) Decrease In The Frequency Of Worldwide Fads
E) Decentralization Of
Organizations Answer: C
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
15) Which Of The Following Is A Cultural Change Brought About By Globalization
Enabled By Information Technology?
A) The Enforcement Of Global Patent And Copyright Laws
B) The Availability Of Low-Cost Communication Systems
C) The Development Of Low-Cost Computing Platforms
D) The Frequency Of Worldwide Fads And Phenomena
E) Decrease In The Outsourcing Of
Labor Answer: D
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
16) Identify A Key Factor Of Globalization.
A) Evolution Of Technology
B) Anchor Point Milestones
C) Concept Development Projects
D) Timeboxing Strategies
E) External Interface
Requirements Answer: A
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
8
Copyright © 2025 Pearson Education, Ltd.
,17) Identify A True Statement About The Impact Of Globalization.
A) It Led To A Tremendous Decrease In Prices For Computing Devices.
B) It Led To A Tremendous Increase In Prices For Computing Devices.
C) It Led To A Tremendous Decrease In Processing Power.
D) It Led To A Tremendous Decrease In The Creation Of Automated Tools.
E) It Led To A Tremendous Increase In Communication
Costs. Answer: A
AACSB: Information Technology
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
18) Which Of The Following Best Explains The Process Of Moving Business Processes Or
Tasks To Another Company?
A) Offshoring
B) Liquidating
C) Cloud Computing
D) Downsizing
E) Outsourcin
g Answer: E
AACSB: Information Technology
Difficulty: Easy
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
19) Which Of The Following Can Be Cited As An Example Of Outsourcing?
A) Microsoft Hands Over Its Customer Service Function To Convergys, Located In India.
B) Volkswagen Acquires A Steel Manufacturing Plant To Reduce Its Overall Production Costs.
C) Dell Sources Computer Parts From Suppliers Located In Russia.
D) Audi Starts A Manufacturing Facility In China To Take Advantage Of Low Labor Costs.
E) P&G Acquires A Retail Outlet To Reduce Its Distribution
Costs. Answer: A
AACSB: Analytical Thinking
Difficulty: Difficult
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Application
9
Copyright © 2025 Pearson Education, Ltd.
, 20) Aircraft Manufacturer Boeing Designed Its New 787 Dreamliner Aircraft In Russia Making
Use Of The Availability Of Highly Skilled Aeronautical Engineers. Identify This Strategy.
A) Offshoring
B) Outsourcing
C) Liquidating
D) Franchising
E) Importing
Answer: A
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
21) In Order To Take Advantage Of The High Quality Talent Pool, Ernst & Young Sets Up
Operations In The Philippines And Moves A Part Of Its Tax Services To Its New Facility.
Identify This Strategy.
A) Outsourcing
B) Franchising
C) Offshoring
D) Importing
E) Liquidatin
g Answer: C
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Application
22) Outsourcing Has Seen A Huge Increase Because Of The .
A) Increase In Decentralization
B) Increase In The Use Of Cloud Computing
C) Increase In Advertising Costs
D) Decrease In Telecommunication Costs
E) Decrease In The Cost Of Raw
Materials Answer: D
AACSB: Analytical Thinking
Difficulty: Moderate
Learning Obj.: 1.2: Define Globalization, Describe How It Evolved Over Time, And Describe
The Key Drivers Of Globalization.
Classification: Concept
10
Copyright © 2025 Pearson Education, Ltd.
