Question 1
Zara creates, produces, and distributes most of its products from its headquarters in Spain. Zara is most likely using a ________ configuration.
◦ logical
◦ coordinated
◦ dispersed
◦ concentrated
Question 2
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 ________.
◦ digitization
◦ economies of scale
◦ location economies
◦ the cluster effect