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If rivals manufacture goods in China or other low cost areas, then Zara must match their prices if they compete for the same customers. Zara chooses to have higher prices, but also higher quality goods. This condition may not persist if expenses in Spain grow. … This statement will lead to a decrease in profits. "Manufacturing Base in Spain May Become Expensive" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.