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Athletic shoe manufacturers must balance the costs of labor, raw materials, shipping, import tariffs, and technological advancements. In an effort to keeps costs down, the industry has been looking to overseas sourcing. This reduces the risk of losing revenue if one region which a manufacturer incurs problems. Favorable legislation regarding foreign manufacturing has led to a huge increase in foreign sourcing. Overseas production and sourcing can lower material, and labor costs.
The footwear companies must choose their distribution channels carefully because they want to make the product available, yet remain true to their image and goals...
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