D311 Midterm Questions With Complete
Solutions
What is "Kurkure"? The brand name of a snack sold in India that waste pickers use to
refer to multilayer packaging.
The essence of a differentiation strategy is to offer a unique product that supports a
premium price
Johnson Enterprises manufactures computer chips used in cell phones. The MNE has long
production runs that lower the per unit cost of each chip. The firm also purchases materials in
bulk from its suppliers with whom Johnson has long-term contracts. Johnson is most likely
benefiting from economies of scale
The term "_____________" refers to the additional costs that an MNE operating outside its home
country incurs above the costs experienced by a local firm. liability of foreignness
A useful way to understanding the purpose of strategy is to think of the firm as a(n) ________,
composed of a series of distinct activities, including production, marketing, materials
management, R&D, human resources, information systems, and the firm infrastructure.
value chain
, D311 Midterm Questions With Complete
Solutions
Companies adopt a(n) __________ strategy by making and selling standardized, low-cost
products that vary little to none from country to country. global
Which of the following portrays the global and local pressures that influence a multinational
enterprise's strategy? The Integration-Responsiveness Grid
Corporate level strategy ______. is entirely determined by the use of the IR grid
Zara spends more on advertising than most fashion retailers. (True or False?) False
Zara tries to have store locations close to high-end stores like Gucci and Prada. (True or False?)
True
Zara is faster in designing, making, moving, and selling fashion than other apparel companies.
(True or False?) True
Solutions
What is "Kurkure"? The brand name of a snack sold in India that waste pickers use to
refer to multilayer packaging.
The essence of a differentiation strategy is to offer a unique product that supports a
premium price
Johnson Enterprises manufactures computer chips used in cell phones. The MNE has long
production runs that lower the per unit cost of each chip. The firm also purchases materials in
bulk from its suppliers with whom Johnson has long-term contracts. Johnson is most likely
benefiting from economies of scale
The term "_____________" refers to the additional costs that an MNE operating outside its home
country incurs above the costs experienced by a local firm. liability of foreignness
A useful way to understanding the purpose of strategy is to think of the firm as a(n) ________,
composed of a series of distinct activities, including production, marketing, materials
management, R&D, human resources, information systems, and the firm infrastructure.
value chain
, D311 Midterm Questions With Complete
Solutions
Companies adopt a(n) __________ strategy by making and selling standardized, low-cost
products that vary little to none from country to country. global
Which of the following portrays the global and local pressures that influence a multinational
enterprise's strategy? The Integration-Responsiveness Grid
Corporate level strategy ______. is entirely determined by the use of the IR grid
Zara spends more on advertising than most fashion retailers. (True or False?) False
Zara tries to have store locations close to high-end stores like Gucci and Prada. (True or False?)
True
Zara is faster in designing, making, moving, and selling fashion than other apparel companies.
(True or False?) True
