Question
A factory owner in Bangladesh, Tipu Munshi, manufactures clothing for Walmart and other retailers around the world. One of Tipu's products is a pair of
A factory owner in Bangladesh, Tipu Munshi, manufactures clothing for Walmart and other retailers around the world. One of Tipu's products is a pair of jeans sold to Asda, a Walmart subsidiary in Britain, which sells the jeans for $US 22.12. Asda Stores Ltd. is the third-largest retailer in the UK, focusing on food, clothing, and general merchandise. Tipu completes each set of jeans at an average cost for materials, labor, and other factory costs plus $0.26 profit, for a total of $7.29 each to Asda. The jeans are then shipped to Asda by Li & Fumg. a Hong Kong company, for $4.33 per pair. Finally, Asa adds an additional $10.50 of cost and profit, thus arriving at the selling price of $22.12 per pair of jeans. Identify the value chain for the Asda Jeans.
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