Below, you will find an explanation from a tutor that I do not understand because the amounts do not match those provided in table 9-3 in the safe url.

Original question: 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 in the safe URL below, 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

How is China's average hourly wage .40EUR, when the amounts provided in table 9-3 are 0.62 Textiles and 0.43 Clothing? And why are the amounts the tutor provided in Euro, when the table provided shows amounts in dollars? They did the same for India and Portugal. I am more confused than I was before I reached out to a tutor for help. Can someone please make this make sense, and please do not change the subject of this tutor question, as it is a supply chain question only. Thank you!

Previous tutor's Explanation:

The first cost that needs to be considered is labor costs. Table 9-3 in the safe URL provides information about the hourly wages for different levels of skill in the countries being considered. The hourly labor costs in China can be estimated by taking the average of the hourly wages at the different levels of skill, which is 0.40. Similarly, the hourly labor costs in India can be estimated by taking the average of the hourly wages of the different levels of skill, which is 0.80. For Portugal, the average of the hourly wages at the different levels of skill is 2.00 and for Spain, the average of the hourly wages at the different levels of skill is 2.20.