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A garment maker weighs a safety and labour upgrade
The prompt
A fictional garment maker in Vietnam has revenue of USD 50 million a year. Its largest customer, a European brand covered by the CSDDD, takes 40 percent of sales and earns the maker a 10 percent margin on them. The brand will keep buying only if the maker upgrades fire and building safety (USD 3 million once) and adds audits, overtime limits and higher wages (USD 0.8 million a year). The maker also has a USD 30 million sustainability-linked loan whose interest margin falls by 0.10 percentage points if it meets the same standards (illustrative numbers). Should it invest?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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