Which of the Following Is One of the Potential Financial

question 34

Multiple Choice

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.

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Definitions:

Exocrine Gland

A type of gland that releases its secretions through ducts to an external or internal surface, such as sweat, salivary, and digestive glands.

Ducts

Channels or tubes in the body through which fluids or other substances are transported or secreted.

Colostomy

Incision of the colon for the purpose of making a more or less permanent opening.

Artificial Opening

A surgically created opening in the body for the discharge of bodily fluids or waste, often referred to as a stoma.