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Middle East. Most of its European customers were B&L subsidiar-
ies that operated warehouses in most of the European countries.
In the Middle East, most of B&L Ireland's customers were inde-
pendent distributors that sold other products in addition to Ray-
Bans. B&L Ireland did not sell any sunglasses in Ireland.
Not all of the B&L sunglasses sold in Europe and the Middle
East were assembled at the B&L Ireland sunglass assembly facili-
ty. B&L Ireland tended to manufacture SKUs of the biggest
runners (i.e., the best selling styles of sunglasses) so that it
was not required to train employees to assemble those products
that were in less demand.
B&L Hong Kong sold the sunglasses it assembled for distribu-
tion in Southeast Asia. It sold sunglasses directly to retail
optical shops in Hong Kong and sold to both related and independ-
ent distributors for distribution in the remainder of Southeast
Asia. In addition to selling the sunglasses it assembled, B&L
Hong Kong sold B&L sunglasses not assembled by it as well as
other B&L products.
In general, B&L Ireland and B&L Hong Kong sold sunglasses at
prices equal to the international distributor list price (1) less
25 percent for related distributors and (2) less 10 to 15 percent
for unrelated distributors.
Neither B&L Ireland nor B&L Hong Kong assembled sunglasses
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