Zara Is Successful in the Highly Competitive Fashion Industry Because

question 4

Multiple Choice

Zara is successful in the highly competitive fashion industry because:

• A)it is able to get what fashion consumers want into stores quickly.
• B)it relies on formal surveys of consumers to judge what will be popular next season.
• C)it outsources production to low-wage countries.

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Definitions:

Recessionary Gap

The difference between the actual output of an economy and its potential output if all resources were fully employed, indicating underperformance.

Expansionary Gap

A situation in an economy where total spending exceeds the production capacity, leading to inflationary pressures and a rise in output.

Effectiveness Lag

The time needed for changes in monetary or fiscal policy to affect the economy

Decision-making Lag

The delay between the identification of a need for a policy response and the implementation of the decision.