Harmonized Tariffs $$ Moving good from global suppliers to the U$.$S$.$ market

Scenario: It$$s February $15,20234$ and you are working as a buyer for the Team Shop

at Little Caesar$$s Arena. The Detroit Red Wings are clinging to a playoff spot and

demand for team apparel is skyrocketing. Your supervisor has asked you to analyze

and recommend external sources of moisture$-$wicking polyester t$-$shirts. You need to

source them fast as the t$-$shirts are expected to be big sellers leading into the

postseason which begins in late April!

Your search generates three potential sources for the $500$ dozen units of product needed. Now, figure out

which one is the best financial deal and import solution for your company.

Step $1$: Get all your information in the required measures and calculate key costs per dozen in US $

Supplier Location Exchange

Rate

$($per $$1$ US$)$

Purchase

Cost per

Dozen

Purchase

Cost per

Dozen

Transport

Cost per

Dozen

Transport

Cost per

Dozen

Fanatics Canada $1\mathrm{.}36$ CAD $388$ CAD $ $35$ CAD $

Adidas Germany $0\mathrm{.}92$ EUR $230$ EUR $ $34$ EUR $

Youngone Korea $1,354\mathrm{.}6$ KRW $300,500$ KRW $ $65,000$ KRW $

Step $2$: Calculate the duties for each option in US $

Supplier Location Country

Code

Purchase

Cost per

Dozen

Rate of Duty

Applied

Duty Cost per

Dozen

Fanatics Canada CA $ $

Adidas Germany DE $ $

Youngone Korea KR $ $

Step $3$: Calculate the total cost for each option in US $

Supplier Purchase

Cost per

Dozen

Duty Cost

per Dozen

Transport

Cost per

Dozen

Landed Cost per

Dozen

$($Purchase $+$ Duty $+$

Transport$)$

Total Landed Cost per

Shirt

$($Landed Cost $/12)$

Fanatics $($CA$)$ $ $ $ $ $

Adidas $($DE$)$ $ $ $ $ $

Youngone $($KR$)$ $ $ $ $ $