Use the total cost of ownership model to evaluate Zara's decision to outsource its clothing production to low-cost Asian countries, especially China. Make sure to consider associated costs such as hourly labor, transportation, tariffs, etc. for China, India, Portugal (closer to home), and Spain (local). HINT Hourly costs are given in Table 9-3, but not all costs are included. For others, perform an internet search to get the exact cost numbers or use relative measures.

Safe URL:

file:///C:/Users/user/Downloads/Zara%20Case%20(1).pdf