7 Question 8Please calculate Inditex production costs in comparison to its competitors who outsourced to Asia.Assume Asian production is 20% more expensive than European production (page 11 of the casesuggests it is 15% to 20% more expensive). Thus if it produced all its garments in Europe, Inditexwould be 20% more expensive than its competitors. But note that Inditex does not produce 100% ofits garments in Europe (see page 11 second para). Thus its production costs would be lower than themaximum 20% depending on the proportion of production in Europe. Using data from the case onthe proportion of garment production in Europe Inditex production costs are . than competitors.There is insufficient data in the case15% higher16% higher10% higher

According to the question, Asian production is 20% more expensive than European production.…

Question 8 Please calculate Inditex production costs in comparison to its competitors who outsourced to Asia. Assume Asian production is 20% more expensive than European production (page 11 of the case suggests it is 15% to 20% more expensive). Thus if it produced all its garments in Europe, Inditex would be 20% more expensive than its competitors. But note that Inditex doces not produce 100% of its garments in Europe (see page 11 second para). Thus its production costs would be lower than the maximum 20% depending on the proportion of production in Europe. Using data from the case on the proportion of garment production in Europe Inditex production costs are . than competitors. There is insufficient data in the case 15% higher O 16% higher O 10% higher

Question 8 Please calculate Inditex production costs in comparison to its competitors who outsourced to Asia. Assume Asian production is 20% more expensive than European production (page 11 of the case suggests it is 15% to 20% more expensive). Thus if it produced all its garments in Europe, Inditex would be 20% more expensive than its competitors. But note that Inditex doces not produce 100% of its garments in Europe (see page 11 second para). Thus its production costs would be lower than the maximum 20% depending on the proportion of production in Europe. Using data from the case on the proportion of garment production in Europe Inditex production costs are . than competitors. There is insufficient data in the case 15% higher O 16% higher O 10% higher

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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