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Zara is currently considering outsourcing clothing production to low-cost Asian countries, especially China. Use the total cost of ownership model to evaluate this decision. 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.

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