My friend claimed the Euro value added tax (VAT) was the biggest factor in the high Euro price for jeans—but I do not know if that is correct.
Probably true, at least in part. But also things like Levis would sell directly to a department store, which would mark them up 30% because they are easy to stack on shelves and sold a million pairs a year it was a good profit. Meanwhile, they would sell to importers in Europe who would mark them up, who sold them to distributors who marked them up, who sold to retailers who marked them up, plus taxes including the VAT, plus transport costs between the different intermediaries, and import duties and freight/port unloading fees. Suddenly a $10 pair of jeans at wholesale price in the USA costs a consumer $100+ in Europe.