A demand 10 4 20 3 2 B demand 12 1 4 8 7 Import Duties 3 20 4 15 4 Table 2 Plant Capacities and costs for A and B Capacity Fixed Cost/ Year Variable Cost/ Unit A EU 20 100 6 N america 20 100 5.5 S America 10 60 5.3 B EU 20 100 6 N america 20 100 5.5 Rest of Asia 10 50 5 Table 3 Transportation costs between Regions N America S America EU Non EU Japan N America 1 1.5 1.5 1.8 1.7 S america 1.5 1 1.7 2 1.9 EU 1.5 1.7 1 1.2 1.8 Non EU 1.8 2 1.2 1 1.8 Japan 1.7 1.9 1.8 1.8 1 Rest of Asia/ A 2 2.2 1.7 1.6 1.2 Africa 2.2 2.2 1.4 1.5 1.9 Rest of Asia/ Australia Africa 2 1 3 1 22 25