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Is microeconomics the correct answer for exercise 11, letter A? (https://www.coursehero.com/u/file/50198878/Econom%C3%ADapdf/?justUnlocked=1#doc/qa) The statement says that Zara defends itself against attacks of mexican textile manufacturers, denying

Is "microeconomics" the correct answer for exercise 11, letter A? (https://www.coursehero.com/u/file/50198878/Econom%C3%ADapdf/?justUnlocked=1#doc/qa)

The statement says that Zara defends itself against attacks of mexican textile manufacturers, denying chinese contraband. Executives are surprised: "We're almost the only company in the the world that produces in Europe", they say.

Microeconomics studies the decisions of individuals and firms, just like Zara. But the statement includes the mexican textiles, chinese contraband and the production in Europe, wich are part of a global scene, and macroeconomics studies a large and global approach of economy.

So, Zara and its decisions are the main subjects here, but a global factor (that may be part of macroeconomics field) its included too: is it right to say that this example is part of microeconomics (because it's a firm) even if a global factor appears there?

I think it's right, but I also want to know why macroeconomics would be wrong

Thank you!

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