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Background of example

  • BigIdeas Pty Ltd is an Australian company selling imported goods purchased from China
  • Purchases from Chinese suppliers are contracted in $USD
  • There are 4 suppliers Woo1, Woo2, Woo3 and Woo4
  • An identical set of products is purchased from each supplier - jeans, tshirts and shoes
  • A shipping agent Golden Sun Shipping packs all Chinese orders into a container and ships every month to Australia
  • Each order delivered is assessed by customs and Australian Customs and Border Protection Service 
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