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DY Company, based in J Country, designs and manufactures high end fashion clothing, which itsells through its international chain of outlets. The company’s customers are willing to pay highprices for DY branded fashion items based on their quality and innovative design.In the last year the company has faced difficult trading conditions and, in particular, has sufferedfrom significant increases in manufacturing costs. The Finance Director has recommended thatthe Company should focus its efforts on design and retail. She has proposed that allmanufacturing should be outsourced, and has identified a manufacturer which is based in TCountry where production costs are significantly lower.
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