Zara's production costs could rise at higher rates than its competitors because many of the firm's costs are tied to the _____.

Name: Zara's production costs could rise at higher rates than its competitors because many of the firm's costs are tied to the _____.
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Question

Quizplus · Accepted Answer

Zara, a Spanish company, incurs many of its costs in euros. If the euro strengthens against other currencies, Zara's production costs could rise more than its competitors', especially if those competitors incur costs in weaker currencies.

Zara's Production Costs Could Rise at Higher Rates Than Its