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Chinese or Korean fabric for a Vietnamese factory?
The prompt
A fictional European fashion brand buys 500,000 cotton T-shirts a year from a factory in Vietnam. Made with Chinese fabric, a shirt costs USD 3.80 delivered to the EU border (its CIF value). Made with Korean fabric, it costs USD 4.05. The EU duty is 12 percent without a preference and 0 percent under the EU-Vietnam agreement. Chinese fabric does not meet the agreement's rule, and Korean fabric does. Which fabric should the brand choose?
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