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It's simple. Imagine you import bikes from China. You pay a manufacturer $200 a piece (let's say you buy many bikes at once), than you pay more $50 a piece for shipment, more $50 at customs, more $10 for storage and more $15 for delivery from warehouse to your store.
Now, if you can sell a piece for more than 200+50+50+10+15=$325 - it will be economically justified (theoretically)
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∙ 11y ago
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