Big Mac Index

November 26, 2014| Papers Haven

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. Review the Big Mac Index, Table 10.2, in your course book. The most recent Big Mac Index can be found at the following web address: http://www.economist.com/markets/bigmac/index.cfm. Incorporate answers to the following questions in a well-crafted essay response including supporting evidence for your discussion. Remember to cite any sources used, including the textbook (APA format is required).


  • Briefly discuss the history and purpose of the Big Mac Index. Where is it most expensive to buy a Big Mac? Where is it the least expensive to buy a Big Mac?
  • What factors other than currency overvaluation and undervaluation might contribute to these differences?

    Based on the theory of purchasing power parity, what is likely to happen to these currencies against the dollar in the next few years?

    Minimum: 200 words




2. Read the case study “Welcome to the World of Sony – Unless the Yen Keeps Rising” at the end of Chapter 10 in your textbook. Address the following questions in your response. You should make sure to include core concepts discussed in your textbook in your answers.


  • Given instability in the currency markets, why do you think it is important for Sony to manufacture more products in the United States and Europe and to also buy more from suppliers in other countries in Asia?

    Identify the major forces that affected the Japanese yen prior to the global financial crisis in the fourth quarter of 2008? In your opinion, what has had the greatest impact on the yen since then, and where do you forecast the future value of the yen?

    Minimum: 200 words



3. Prepare a paper (700 words) discussing the case and incorporating answers to the questions below. It is important to address each of the questions presented. CSU requires that students use the APA format in writing course papers. Therefore, the APA rules for formatting, quoting, paraphrasing, citing, and listing of sources are to be followed. The Reference List is not included in the required paper length. Your paper must contain at least five references, which

may include your course textbook, internet sources, books, and professional journals or other appropriate resources. Please do not copy or plagiarize others materials. All papers are electronically scanned by TurnItIn. Significant deduction of points may result when copying and plagiarism is evident.

Read the case study “Burger King Beefs Up Global Operations” at the end of Chapter 12 of your course textbook. Incorporate into your analysis responses to the following questions. You should make sure to incorporate core concepts

from your reading assignment.

1. What is Burger King’s core competency? How does it relate to its chosen strategy?

2. How would you explain how Burger King has decided to configure and coordinate its value chain? Which of Burger King’s value chain activities create the most value for the company?

3. Burger King globally expanded later than its main fast food competitor. What advantages and disadvantages has this created?

4. When entering another country, discuss the advantages and disadvantages that an international restaurant company, specifically Burger King, would have in comparison with a local company in that market.

5. About two-thirds of Burger King’s restaurants and revenues are in its Americas region (United States and Canada) and one-third elsewhere. Should this relationship change? If so, why and how?

6. The case mentions that Burger King prefers to enter countries with large numbers of youth and shopping centers. Why do you think these conditions would be advantageous?

7. How has Burger King’s headquarters location influenced its international expansion? Has this location strengthened or weakened its global competitive position?

8. As CEO of Burger King, what tools and strategies would you use when deciding on possible future locations for the company.

9. What do the implications of the challenges identified in the case have for Burger King’s strategy today and in the future? Information about accessing the Blackboard Grading Rubric for this assignment is provided below.

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