Which of the following is one of the potential financial vulnerabilities that Zara could be exposed to?
A) The cost of Zara products could rise in Spain and other European markets due to the resurgence of the dollar.
B) The costs of maintaining a globally dispersed production model could curtail Zara's profit margins.
C) The high costs of Zara products compared to other retail clothing manufacturers could turn customers away.
D) Most of Zara's products are sold in non-European markets, which are lower-priced and decrease profitability.
E) A strong Euro means Zara's Spain-centric costs rise at higher rates compared to competitors.
Correct Answer:
Verified
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