Supply Chain Management Strategies by chelsea.chiu

720 Supply Chain Management Strategies Professor Grace Canepa Audrey Thames, Farley White, Chelsea Chiu, Heta Patel

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY II. INTRODUCTION III. COMPANY OVERVIEW IV. SOURCING GUIDELINES V. COUNTRY ANALYSIS VI. SOURCING STRATEGY VII. LOGISTICS, WAREHOUSING & DISTRIBUTION VIII. SUPPLY CHAIN STRATEGY SUMMARY IX. CONCLUSION X. APPENDIX XI. REFERENCES

EXECUTIVE SUMMARY According to todayâ&#x20AC;&#x2122;s reports, apparel is the second most environmentally damaging industry in the world, second only to big oil. Manufacturers, pressured with demands for tighter margins and shorter lead times, have had to resort to unsustainable practices, and gross abuse of employees, including unpaid overtime, child labor violations, unsafe working conditions, and even abuse. The rise of fast fashion and the idea of disposable garments, or those that are worn for a season and then discarded, have helped contribute to poor environmental and labor practices across the world.

With the effects of climate change worsening, resources being depleted before our very eyes, and growing exposure to poor factory conditions, particularly after the collapse of the Rana Plaza factory building in Bangladesh, consumers are starting to respond. They no longer want to hand over their money to companies that are quite literally destroying the environment and treating their laborers like slaves.

Enter Artemis. We know that there is a way to maintain profits while acting as a steward to the environment and to the laboring community. We can make and sell apparel while also working to make the world a better place in the process. The time has come to enter the socially conscious fashion movement, and Artemis, like its mythological namesake, will help blaze the trail into a new era of apparel companies that are founded on ethics and stewardship.

INTRODUCTION Artemis is a U.S. based start-up company featuring knit dresses made by 100% modal. The purpose of the company is producing fashion garments through sustainable methods and social responsibility. In order to achieve the goal, Artemis has developed its supply chain strategy in both an ethical and environmental way.

It is important for the company to develop a supply chain which can create the best benefits and decrease the risks as much as possible. Although it’s a big challenge for the company, minimizing the environmental effect through social consciousness during the production process is the core value of Artemis. The company selects modal to produce all dresses in order to ensure the sustainability of fabric, as modal is renewable and has a low environmental impact. The manufacturers of the garment that Artemis chooses also follow the company’s main values.

In order to develop a more beneficial supply chain, the company does deep country research to analyze all the risks and benefits for the business’ operation. A supply chain strategy will help Artemis to approach the company’s goals through the valuation of suppliers, logistics, risk, and costs.

COMPANY OVERVIEW Artemis produces sustainable womenâ&#x20AC;&#x2122;s knit dresses at an affordable price. Our products provide customers fashionable and comfortable womenswear made of Modal which is more sustainable fabric than cotton. Our business aims to increase the eco-friendly consumer consciousness and support womenâ&#x20AC;&#x2122;s rights through our company operation, sustainable products, production, and supply chain development.

Artemis is a fashion womenswear company founded in Savannah, Georgia. We sell our dresses exclusively through our online store. Each customer is able to purchase Artemis dresses on the official website and receive products through our delivery system. We provide our customers with a convenient and efficient shopping experience, shipping everywhere within the U.S.

COMPANY MISSION

Our mission is to provide effortless style in the most socially-conscious and empowering fashion.

COMPANY VISION

Our vision is to make ethical and careful decisions at every level of the supply chain to help create a world where fashion and environmental consciousness are not mutually exclusive.

COMPANY VALUES

HONESTY

ENVIRONMENT

CREATIVITY

PEACE

INTEGRITY

TEAMWORK

PRODUCT Product Category

Product Category

T-shirt Dress

Bell Sleeve Dress

Size Ranges

XS, S, M, L, XL

Fabric

100% Modal, Jersey Knit

100% Modal, Interlock Knit

Retail Price

$65

$72

Product Category

Skater Dress

Maxi Tank Dress

Size Ranges

XS, S, M, L, XL

Fabric

100% Modal, Interlock Knit

100% Modal, Jersey Knit

Retail Price

$72

$75

CUSTOMER PROFILE

Artemis' target customer is women.The target market age group is 20-35 year olds who are socially and environmentally conscious. These urban women of the United States enjoys eating healthy, is well informed and enjoys an eco-friendly lifestyle. She has a college education and makes a minimum of $35,000. She is trendy and tech savvy with a presence on popular social media platforms.

Name: Jessica Age: 29 Place: Brooklyn Education: Master's Degree Occupation: Sales Executive at Etsy Salary: $85000 Marital status: Engaged Interests: Concerts and Art exhibits

Name: Nicole Age: 23 Place: San Francisco Education: Graduate Occupation: Marketing Intern at The North Face Salary: $65000 Marital status: Single Interests: Travelling and Socializing

SOURCING GUIDELINES A) EMPLOYMENT STANDARDS 1. Artemis will always maintain complete transparency at all points of supply chain. 2. All the manufacturing partners around the world would be expected to provide a fair living wages to all their employees. 3. Bonuses and incentives will be provided on major holidays. 4. The maximum work week would be 48 hours and 20 hours of volunteer overtime would be allowed which would have a higher pay. 5. No forced labor will be accepted. 6. Freedom of association and collective bargaining will be allowed to all employees.

B) WOMEN AND CHILD LABOR 1. No discrimination of any sort based on race, gender, religion, sexual orientation, or ethnic origin will be tolerated. 2. Equal wages will be paid to both men and women, with no exceptions. 3. No harassment will be tolerated from any employee and employees would be provided open channels to report misconduct without fear of retaliation. 4. Child care will be provided for working mothers during the entire work week. 5. Women will not be required to disclose pregnancy or marital status during application process. 6. No woman will be terminated due to pregnancy and adequate maternity leave will be provided. 7. No child under the age of 15 (minimum age set by International Labor Organization) will be allowed to work at the manufacturing units.

C) HUMAN RESOURCE AND COMMUNITY INVOLVEMENT 1. Personal growth workshops teaching leadership, business skills, etc. to manufacturing employees will be conducted. 2. 10% of company profits would be reinvested into manufacturing communities through partnerships with NGOs. 3. The factories are required to uphold maximum health and safety standards. 4. Regular quality and safety inspections will be conducted and factories must be equipped to handle emergencies such as fire. 5. Basic hygiene should be in place including access to clean water, sanitation, first aid and adequate breaks should be provided. 6. 10 days of paid sick leaves would be allowed, also acceptable maternity leave pay and pensions would be provided. 7. A day would be given off for all employees to work with nonprofit organizations for community service.

D) ENVIRONMENT STANDARDS 1. Environmental standards will be maintained in sourcing textiles.Textiles will be sourced from companies with globally certified environment standards, including renewable plant sources, minimal chemical and water usage and low emissions. 2. The idea of ‘Reuse’ and ‘Recycling’ will be encouraged along with along with encouragement of planting trees. 3. Artemis will strive to reduce carbon footprints at all levels of manufacturing to address environment change. 4. Waste management will be conducted including waste water treatment and solid waste processes. 5. Packaging materials will be made using recyclable materials. 6. Efficient use of resources will be considered with the shipping of materials and finished goods to reduce the negative impact on environment. 7. Environment friendly and sustainable practices will be undertaken.

COUNTRY ANALYSIS Selection of manufacturers is based on quality, which is our most critical criteria. Other factors considered were technology usage, skills, added value, pricing and on time delivery. Environmental and social performances were also considered keeping in mind the vision and mission of Artemis. We looked around the world to shortlist the manufacturers. Considering that the standards set by our company are high and not easy to meet by most manufacturers, we are willing to work with them in creating a harmony in uplifting them to meet the standard code of conduct. The ones that did not meet our standards and were not willing to work together were eliminated. Regular visits to the manufacturing units will be conducted along with maintaining regular communication via email and phone. The apparel and textile industry is in the midst of chasing countries that provide the lowest costs. Though pricing is important for Artemis, in no situation are we willing to compromise on the quality.We are open to being associated with lower cost countries if assured that they provide a decent work environment. We conducted detailed research on Sri Lanka, Vietnam, Peru and Turkey, covering areas such as political and economic stability, State of Apparel and Textile Industry and lead time of production. The rankings provided are after analyzing the risks and benifits of manufacturing in each country.

SRI LANKA

An island country located off the southern coast of India, Sri Lanka is surrounded by the India ocean, Gulf of Manna, the Palk Strait, and lies in the vicinity of India and Maldives. The tropical island has attracted visitors for centuries with its natural beauty. A long and bitter civil war arising out of ethnic tensions between the majority Sinhalese and the Tamil minority in the northeast came to an end when the government forces seized the last area controlled by Tamil Tiger rebels (BBC). The country with a history of 3000 years, is on the path of strong economic growth following the end of the government’s 26-year conflict. Sri Lanka, formally called Ceylon, was a British colony till 1948. In 1972, the island was renamed Sri Lanka and became republic. Sri Lanka is a parliamentary democracy, with the presidency as main seat of power. Sri Lanka being one of the potential manufacturing country for Artemis, an in depth analysis of the country’s textile industry with an overview of the socio-economic scenario is essential. This study provides an insight into the business practices and determines the stability of Sri Lanka for Artemis’ future endeavors (GlobalEDGE).

COUNTRY TRAITS 1) GEOGRAPHIC –

• Location: South of Asia • Geographic Size: 25,332 sq. mi • Climate: Tropical • Capital: Colombo

2) GOVERNMENT –

• Type: Presidential Republic • Leader: Maithripala Sirisena (President) & Ranil Wickremasinghe (Prime Minister) • Holidays: Independence Day - February 4 & National Heroes’ Day - May 22 • Flag: Lion Flag

3) PEOPLE –

• Population: 22 million • Ethnic group: Sinhalese 73.8%, Sri Lankan Moors 7.2%, Indian Tamils 4.6%, Sri Lankan Tamil 3.9%, other 0.5%, unspecified 10% • Religions: Buddhism (official) 70.2%, Hinduism 12.6%, Islam 9.7%, Roman Catholic 6.1%, other Christian 1.3%, other 0.05% • Languages: Sinhala (official and national language) 74%, Tamil (national language) 18%, Other 8%

4) ECONOMY –

• Annual growth rate: 7.3% • Currency: Sri Lankan Rupee • Ease of doing business: 110 out of 190 (2016) • Exchange rate: 0.0065 US Dollars as of 5.2.2017 (CIA)

STABILITY

POLITICAL The Portuguese and Dutch influenced Sri Lanka after the 16th century. Later it gained independence after nearly 150 years of British Rule. 25 years of violence caused due to the civil war ended in 2009.The government was under fire from human rights for not investigating human rights abuses that occurred during the conflict. The state has since undergone a phase of consolidation with less in-house disputes reported (HRW). Post the conflict, the government has focused on expanding the Sri Lankan economy by investing in both state infrastructure and private sector, with importance given to manufacturing and services (USDS). The president is head of state and of government, and commander in chief of the military. Presidential elections, like those for parliament, are held every six years, but do not occur simultaneously. Maithripala Sirisena was sworn in as Sri Lankan president in January 2015 election by uniting with opposition to pull off an unlikely victory, promising sweeping reforms of the presidency. The government policy statement envisions promotion of a globally competitive, export-led economy with an emphasis on inclusion. Strong emphasis is made on generating one million job opportunities, enhancing income levels, developing rural economies and creation of a wide and strong middle class as key policy priorities. The policy statement makes a proposal of reducing the fiscal deficit to 3.5% of GDP by 2020 (WBG). The country has political stability and is pursuing both political and economic reforms such as boosting competitiveness and greater integration with regional and global markets through comprehensive trade reform and improvements to the investment environment which will be far reaching (CIA). Public confidence in the government continues to increase as it makes political decisions with tangible economic results for the population reflected in improved standard of living. Sri Lanka has been making steady progress on economic reforms, with the government aiming to create one million new jobs through a reform package focused on improving the countryâ&#x20AC;&#x2122;s competitiveness, transparency and macroeconomic stability. A â&#x20AC;&#x2DC;100 Dayâ&#x20AC;&#x2122; program for good governance and transparency into operations had been put forward by the President.This program includes varied areas including fishing, women and children laws, development of small industries, environment, technology and taxes. Notable progress has been made with regards to key pledges, by the time of completing two years in office. Political transformation has been strengthened by measures that support long-term development and competitiveness. International relations have improved dramatically since the last election, particularly with China, India and United States which would facilitate trading activities such as sourcing and manufacturing for Artemis.

ECONOMIC Sri Lanka’s economy has witnessed a transition from a predominantly rural, agricultural economy towards a more urbanized economy driven by services. Strong economic growth in the last decade has led to improved shared prosperity and an important decline in poverty (TWB). Economic growth has been uneven as the economy faced a multitude of global and domestic economic and political challenges such as earthquake, the long lasting civil war and bankruptcy. The economy is shifting towards prosperity and improved living standards are reflected in rising asset ownership, declining shares of food consumption, and a rise in reported household per capita income among the poor (WBG). The GDP per capita was $367.53 and inflation was 4.7%. Sri Lanka’s high debt and low credit rating were leading to crisis which were averted by the country’s deal with International Monetary Fund (IMF) in 2016. The extended fund facility provided $1.5 billion over a three-year period through multilateral and bilateral loans. The program, which is built on six pillars – fiscal consolidation, revenue mobilization, public financial management reform, state enterprise reform, flexible inflation targeting, and reforms to the trade and investment regime – is set to support Sri Lanka’s target of reducing the fiscal deficit to 3.5% by 2020 (CNBC). With the lift of restrictions on the Foreign Direct Investments, the FDI’s have increased to $681.2 million. Sri Lanka is a lower middle-income country with a growing economy, reflecting a peace dividend and a determined policy thrust towards reconstruction and growth. Overall, Sri Lanka has made notable economic transitions from fragility to relative stability.

SOCIAL Sri Lanka’s traditional society passed through many stages of evolution in context of considerable cultural and religious differences. Sri Lanka’s heterogeneous socio-cultural base includes a majority of Sinhalese Buddhists, the Tamilian community, most of whom are Hindus, a multi-ethnic Catholic group and Islamic minority. Throughout the changes in stages, the interaction between social norms and new influences had specific implications for the roles of men and women, as it continuous to do so in contemporary society. Economically active women are 43.5% and Female contributing family workers rate is 56% (GLobalEDGE). Sri Lanka is a leading country in the South Asian region in human development indices with its high literacy rate of 92.6% and national health indicators. The country boasts a life expectancy of 72 years for men and 78 years for women. Sri Lanka abides by international laws and UN’s rights of labor, children and women. The country is a notch above its competitors because of its stringent adherence to child labor laws and endorsement of gender equality. The minimum legal age for employment is set at 14 years and minimum age for employment in hazardous work is 18 years. Annual Population growth rate is 0.8%, population below the poverty line is 22% and urbanization 18.4%. Sri Lanka has a labor force of 7.17 million out of which 38% is in agriculture, 17% in industries and 45% in services (WBG). The unemployment has declined to 4.3% and this is partly due to large outflow of Sri Lankan migrant labor. Unemployment has been higher among women and high school/college graduates, with youth and entry level unemployment still remaining an issue. Labor is available at low cost though higher than other South Asian countries and the labor force is literate and trainable. Approximately 20 percent of the workforce is unionized, but union membership is declining. All workers, other than police, armed forces, prison service, and those in essential services, have the right to strike. It is important for Artemis to consider factors like cost and availability of labor for manufacturing (CIA). The role of women and child labor laws play a crucial role while deciding a manufacturing country as they should match up to our company Artemis’ guidelines.

TECHNOLOGICAL

The internet penetration in Sri Lanka has witnessed a remarkable growth of mobile broadband connection demand. The country is making a digital hub with the growth of e-commerce industry. One of the aspect that has enriched and enhanced Sri Lankan lifestyle is the easy accessibility to the internet via smartphones and other technological devices. Active use of Information and Communication Technology (ICT) services in economic activities such as e-banking, mobile banking, e-bus ticketing and mobile point of sale (POS) has been increasing. The 2017 statistics show more than 6 million active internet users in Sri Lanka. More than 4.5 million users are active on Facebook and more than 200k users on Instagram. Despite Sri Lankan governmentâ&#x20AC;&#x2122;s recent removal of telecommunication services from the 15 percent value-added tax exempt list and the steps taken by 2017 budget to remove tax holidays given to data leading to 50% effective taxation on mobile services, the Sri Lankanâ&#x20AC;&#x2122;s urge to increase their connectivity for educational, recreation and occupational reasons have remained sturdy through the years. The future seems bright for content marketing, visual marketing and e-commerce (CDM). The state of technology in Sri Lanka will help build a supply chain which would be based on information sharing and speed.

ENVIRONMENTAL The countries of the world face many environmental challenges in common. Nevertheless, the nature and intensity of problem vary from region to region, as do various countries' respective capacities, in terms of affluence and infrastructure, to remediate threats to environmental quality. Inspired by millennia of Buddhist tradition, many in the nation display a strong conservation ethic. The island is one of the world's premier sites for sustainable terraced agriculture, in which the same human-shaped and human-tended landscape that produces staple rice for today's citizens did the same for their distant ancestors. The biodiversity of Sri Lanka includes spectacular mammals and array of plants and harbors rich of aquatic life. Some of the issues in regards of the environment are deforestation, soil erosion, wildlife population threatened by urbanization, coastal degradation, waste disposal and air pollution (CIA).The country also faces natural hazards like cyclones and tornados. Green house emission is 7.6Mtc. Several measures have been taken by the Ministry of Forest and Environment with the help pf Non-governmental organizations like Sarvodaya Movement and Wildlife and Nature Protection Society in regards to climate change, hazardous waste, nuclear test ban, ship pollution and Law of Sea (UN). Artemis would collaborate with manufacturers striving towards the betterment of the environment.

STATE OF APPAREL AND TEXTILE INDUSTRY Sri Lanka’s apparel industry began to grow significantly in the 1980s as an alternative to India’s garment manufacturers, because of its open economic policy as well as the trade and investment friendly environment. Sri Lankan Apparel Manufacturers and Suppliers have created a reputation worldwide for production of top quality ethical fashion apparel trusted by reputed fashion brands. Past four decades have witnessed epic growth of the apparel export industry which has dynamic contribution to the Sri Lankan economy (EDB). The Industrial Production growth rate is 5.6%. Sri Lanka witnessed Exports of $30 billion and Imports of $35 billion. Worn by quality conscious consumers all over the world, products belonging to these international brands are sourced and manufactured in Sri Lanka-South Asia's fashion and logistics hub and global apparel visionary (TWB). The apparel categories include sportswear, lingerie, loungewear, bridal wear, work wear, swimwear and children wear.These products are manufactured and exported with the flexibility of catering to specific seasons of many countries around the world; it is no wonder that this industry has enjoyed epic growth levels over the past four decades and is today Sri Lanka's primary foreign exchange earner (EDB). US continues to be the single largest export destination for Sri Lankan products with 26% of its exports. The Sri Lankan government has set out a number of proposals in its 2017 budget to support the country’s apparel industry, including the formation of a textile cluster and plans to boost the number of skilled labor. Sri Lanka cannot compete with countries like Bangladesh over cheap labor. Prime Minister Ranil Wickremesinghe has announced major investments in technology with $7.1 million invested to turn Textile Factory high-tech. The US lead TPP trade pact of which Sri Lanka is not a signatory – on the horizon, competition from TPP signatories such as Vietnam could have blown to the South Asian nation’s apparel export industry. Sri Lanka nationals are primary owners of 85% of the small-to-mid-sized factories, while larger operations are typically joint ventures or foreign-owned. A large portion of Sri Lanka's factory work is provided by women. The apparel industry plays a pivotal role as a key driver of Sri Lanka’s national economy. The apparel manufacturing industry has grown to be the most significant contributor over its twenty-five years of existence and the apparel industry is the strongest manufacturing sub-sector in terms of its contribution to industrial production, foreign exchange earnings and employment generation.

Sri Lanka is a producer of "Garments Without Guilt" the "Made in Sri Lanka" label is comfortably synonymous worldwide with the values of high quality, reliability, and social and environmental accountability. There are small and medium scale manufacturers and exporters of apparel with categories spanning from sportswear, lingerie, lounge wear, bridal wear, work wear, swimwear and childrenâ&#x20AC;&#x2122;s wear, etc. Most of the manufacturing firms are situated South West of the country.There are around 300 to 350 manufacturers of apparel with keys players being Brandix, MAS Intimates, Hirdaramani, Omega Line amongst the few. The industry provides employment to over 300,000 directly and 600,000 indirectly with substantial number of women (EDB).The labor cost for industry is $65 per month. Sri Lankan apparel industry has adopted the Green manufacturing concept. Sri Lanka also showcases the best of technology in the garment industry, including the world's first eco-friendly "Green Garment Factory" that cut energy in half and water consumption by 70%. A collective effort to reduce the carbon footprint has been made by Sri Lanka suppliers and manufacturers to make local apparel industry more eco-friendly and sustainable. Sri Lanka also abides by the regulations of the World Trade Organization (WTO). Sri Lanka is a socially responsible and preferred destination for apparel sourcing and is the only outsourced apparel manufacturing country in Asia to ratify all 27 ILO (International Labor Organization) conventions. The local apparel industry stands out as a reliable source that pays fair wages to workers and actively discourages sweatshops and child labor (CIA). Sri Lanka has built its competitive edge on value-addition by providing services like R&D, design, logistics, etc. rather than cheap production cost, with greater emphasis on product quality and its ability to manufacture niche products. Despite increased international competition, exporters are seen to be faring quite well.

HIRDARAMANI INTERNATIONAL EXPORTS PVT LTD â&#x20AC;&#x201C;

About: Hirdaramani International is a garment export trading house exporting to markets in the EU and the US. It is a one-stop shop for the apparel industry and has the capacity and the expertise to handle a range of internationally renowned clients from the worldâ&#x20AC;&#x2122;s leading designer labels. Hirdaramani Knit Cluster focuses on Knitwear.

Abilities: Knitwear for Men, Women and children Additional Services Offered: In house textile lab, product development, design, printing, embroidery, washing, packaging (one stop shop)

Clients: M&S, Tommy Hilfiger, Levis, Nike, Patagonia, Hugo Boss, Uniqlo, Calvin Klein, Adidas, Eddie Bauer Capacity: 5 million pieces/month. 10 manufacturing units Address: Lot S-2, Seetgawaka Industrial Park, Avissawella. Contact: (94) 36-4279123, (94) 36-4279179 Email: dushan.senanayake@hirdaramani.com Website: www.hirdaramani.com

2) BRANDIX LANKA LTD – About: Brandix takes wide initiatives to achieve manufacturing and supply chain excellence, close collaboration with their suppliers and sales offices at the customer’s doorstep all guaranteed fast and flexible solutions from the source to the stores.

Products: Casualwear, jeans, bottoms, 5-pocket jeans, loungewear, sleepwear, fine lingerie, complex embellished products, adults/kids brief, boxers, t-shirts, knit tops, bras, buttons, woven and weft knitted fabric

Services: End to end Apparel solutions – Product development, manufacturing and marketing, R&D, washing, dyeing, finishing and quality control services

Clients: Victoria’s secret, Gap, Next and Marks and Spencer, Lane Bryant, Land’s End Capacity: 350,000 per month in each location. 42 manufacturing locations Address: 409, Galle Road, Colombo 3 Contact: (94) 11-4727222, (94) 11-2575485 Email: info@brandix.com Website: www.brandix.com

3) TIMEX GARMENTS â&#x20AC;&#x201C; About: Timex Garments operates primarily in the apparel manufacturing industry, and exports for international brands across the globe. They have 17 facilities including 16 in Sri Lanka and 1 in Bangladesh. They specialize in Digital printing, Hand beading, Bra Cup Molding, Heat Seal Transferring and In-house Pleating.

Products: Dresses, Blouses, Lingerie, Shorts, Skirts, Pants

Services: Designing, Manufacturing, Printing

Clients: Debenhams, Forever21, Guess, H&M, M&S, next, Nine West, Polo, Splash,Vera Wang, Topshop, Tommy Hilfiger

Capacity: 10000+ employees. 17 facilities

Address: 455/1, Bauddhaloka Mawatha, Colombo 08

Contact: (94) 11-4728200

Email: info@timexsl.com

Website: www.timexsl.com

CULTURAL INSIGHT Men and women who subscribe to more Westernized habits and tendencies will offer to shake hands when greeting others. As a result of British influence, this Western mode of greeting is also appropriate for either sex. At a party or festive occasion, one should greet and shake hands with everyone in the room. Nevertheless, one should avoid touching, (except the specific cases of handshaking noted above), hugging, or kissing when greeting another person. It is customary to address a Sinhalese person as Sir (Mahattaya) or Madame (Nona) following their last names, or simply by this title alone. One should also always use professional titles and avoid addressing another by his or her first name unless one is asked to do so. Face is considered as honor or personal dignity. It is crucial to avoid a blunt â&#x20AC;&#x2DC;noâ&#x20AC;&#x2122; for an answer and prefer giving a vague or uncommitted answer (CG).

When it comes to gifting, avoid flowers as they are used in mourning. Only give alcohol if you are sure the recipient drinks.White or black are the colors of funerals and mourning. Any gift received should be reciprocated. If one is invited to a home for a meal, a gift is not expected but will be appreciated. Buddhists tend to be vegetarians, Hindus do not eat beef, and Muslims do not eat pork. The protocol surrounding one's feet should also be noted. One should not point one's feet at another person.The feet are considered unclean, so if one's shoes or feet touch another person's shoes or feet, one should be sure to apologize. Dressing is quite conservative for both men and women. Jeans and business casual snot recommended for first meeting. Hotter seasons and parts of the country tend to be less formal. In case of Titles & Business cards, usually exchanged after initial handshake and greeting. Titles and qualifications are very important in Sri Lanka (DBSL). For meetings, personal relationships are extremely important for business so allocating some time for small talk vs. business talk at the beginning of meeting is a good idea. It is considered rude to be late for meetings. When entering a meeting room, you must always approach and greet the most senior figure first. First meetings are often used solely to build a relationship and conduct business. a company should be approached as purely a relationship building exercise. It is common for meetings to be interrupted (often several times) by other business. This is not usually viewed as rude. Hierarchy is very important resulting in decision making to be a top-down process. Decisions tend to take time and are not usually made quickly unless the decision maker is in the room (DBSL). In terms of negotiations, maintaining face is important for all communication, so it's best to not put people in awkward positions or under pressure and never openly criticize people. Initial meetings will usually take place with middle ranking personnel who gather information to present to the decision maker. Getting to the decision maker through them is based on establishing good rapport and having a solid proposal (CG).

TRADE AGREEMENTS Sri Lanka is the one of the safest countries in the world to invest in due to a number of mechanisms in place to protect investors. The country has a very independent system of courts which can redress any concerns of investors. Sri Lanka also has bilateral Double Tax Avoidance Agreements with 38 countries. Relations between the United States and Sri Lanka are based on mutual interests and a shared commitment to the ideals of democratic governance. U.S. policy toward Sri Lanka is characterized by respect for its independence, sovereignty, and moderate nonaligned foreign policy; support for the country's unity, territorial integrity, and democratic institutions; and encouragement of its social and economic development. Sri Lanka follows a non-aligned foreign policy, while taking part in multilateral diplomatic efforts. At the United Nations, it has declared a desire to promote sovereignty, independence and development in the emerging economies of the world. It is also a member of the British Commonwealth, the South Asian Association for Regional Cooperation (SAARC), the World Bank, International Monetary Fund, Asian Development Bank, and the Colombo Plan. Although Sri Lanka declined to join the United States-sponsored Southeast Asian Treaty Organization (SEATO) in the 1950s, it has maintained generally cordial relations with the U.S. and claims an affinity with U.S. democratic values. Some Sri Lankan exports to the United States qualify for duty free-privileges under the U.S. Generalized System of Preferences (GSP) program, which offers preferential duty-free treatment for up to 5,000 products (apparel products are excluded) from designated beneficiary countries. Legal authorization of the GSP program expired on July 31, 2013 and has not been reauthorized yet. As a result, products that were previously eligible for GSP duty-free benefits are now subject to regular duties. Legal System and Considerations Sri Lanka's legal system is a highly complex mixture of English common law, Roman-Dutch, Muslim, Sinhalese and customary law. In terms of business, foreign investments are guaranteed protection by the constitution of Sri Lanka. The government has entered into 24 investment protection agreements with foreign governments and is a founding member of the World Trade Organization (BOISL).

TRANSPORTATION Sri Lanka is situated at the crossroads of major shipping routes connecting South Asia, Far East and the Pacific with Europe and the Americas. Sri Lanka is strategically located next to the fast growing Indian sub-continent with close proximity to Southeast Asia and the Middle East. Sri Lanka has one of the highest road densities in the world with more than 100,000 km of paved roads. This creates an excellent road network for inland transportation. With an intension of connecting local communities together, E-grade highways have been developed which are access-controlled, high-mobility roads permitted to speed up. A and B grade roads are national highways and C and D grade roads are provisional roads and others are local roads. The rail network of Sri Lanka consists of main lines, coastal lines and country lines. The highways and roadways around the country are in very good condition and are being upgraded. In addition, air- and water-based transportation modalities augment the inland transport of the country. Buses are the principal mode of public transport. Bus services are provided by the state-run Sri Lanka Transport Board (SLTB) and by privately run buses. Sri Lanka has deep-water ports at Colombo, Hambantota, Galle, and Trincomalee. Of these, Colombo handles the highest volume of cargo (BOISL). The Sri Lankan government has launched an ambitious program of physical infrastructure development to completely upgrade the sea, air, road, power and telecom backbone of the country. The Sri Lankan government has declared its intention to develop the country as a leading regional aviation, navigation and trading hub in South Asia.Therefore, the development of maritime & aviation transportation is at the forefront of the government's infrastructure development agenda. The focus of these developments is to expand the capacity and improve the efficiency of existing ports through modernization and construction of new ports and airports in strategic locations (BOISL). It would take approximately 37 days to get from Colombo port to Savannah port. There are freight companies such as Dart Global Logistics, Sri Lanka Freight forwarders, Cargo Overseas Lanka and Colombo Express Inc. Colombo Express Inc. charges $4,285 for the shipment and 3.5% as insurance charges.

PRODUCT CLASSIFICATION The harmonized tariff schedule code for knit dresses is 6104.43.20.10. This code places it under dresses made of synthetic fibers and not containing 23 percent or more of by weight of wool or fine animal hair. Under this classification, the general rate of duty is 16%. Our products were womenâ&#x20AC;&#x2122;s dresses including four different categories: T-shirt dress, Maxi dress, Bell sleeve dress and skater dress. Products were under womenâ&#x20AC;&#x2122;s dresses of other because our material was modal.

LEAD TIME OF PRODUCTION Lead time is a main challenge that the apparel industry of Sri Lanka has to face due to rising markets, frequently changing fashion patterns and high competition in the industry both locally and internationally. Therefore, meeting customer demands at a minimum time is crucial. The geographical location of Sri Lanka places it far from the main markets.This is a disadvantage to some extent, because quick responses are crucial to keeping up with fast changing fashions. Sri Lanka and India have the higher lead time (19-45 days) compared to competing countries such as Mexico (6-8 days). The industry has to focus on exploring new markets and making efforts to strengthen the raw material base for the industry and to reduce lead time. If delays involved in obtaining raw material could be eliminated by attracting world class fabric producers, accessory manufacturers etc., the present long lead times could be reduced. Another issue is the tropical season of Sri Lanka, which is also a prone country to floods, cyclones and tornados. Business remains shut during the 12 religious days of Poya along with 2 days of New Year celebration during mid-April. Risk of Strikes due to Union formation could also possess treat to lead time (UKSL).

RISKS AND BENIFITS

Sri Lanka has some risks in terms of unhealthy fiscal positioning which is because of the high public debt and also the government budget deficit. The low foreign exchange reserves have weakened current account external liquidity. Political instability lingers over the country due to the history of civil war. The labor force is migrating and the cost of labor is on a rise. Lead time is high due to distance along with monsoon adding to the delay. Concerns are rising in terms of corruption. Even though there are some risks in manufacturing in Sri Lanka, there are benefits too. The economic prospects and strategic economies are developing. Government is striving to make reforms and plans to transform Sri Lanka into a strategically important economic center as a knowledge hub, commercial hub, maritime hub, aviation hub and energy hub. Educated and adaptable workforce is available at competitive wage rates. Easy access is possible to key markets due to advantage of location and connectivity which helps Artmeis in sourcing from Asian countries. Trade agreements like ISLFTA, SAFTA, APTA, PSLFTA existing with other countries around the world helps Artemis in sourcing. Certified manufacturers are a boon to Sri Lanka making the profile very promising.

CONCLUSION

Culturally rich and diverse country, Sri Lanka has lots to offer to our company Artemis. With a balance of economic and political scenarios, Sri Lanka is in ideal state for investing. Developing technological advancement along with the high literacy rate the manpower holds a great deal of potential. A promising economy as it looks in the future, Sri Lanka is already putting stepping stones in terms of sustainability. Though it possesses some threats but none being extravaggant in near future.

VIETNAM

For centuries, Vietnam struggled with power as larger countries continuously ruled over it, including France and China. Yet since it first gained independence in 1945, the Socialist Republic of Vietnam has placed a huge emphasis on its economic liberalization and modernization in order to produce more competitive, export-driven industries (CIA). Though tradition is still valued in their culture, the Vietnamese have grown to become an attractive, stable and progressive nation, due to their single-ruling CPV party, cultivating export industry and ongoing regard of the development of its people. This analysis will examine the current socio-political-economic aspects of the country in order to forecast the direction of not only the textile industry, but the socialist republic as a whole in terms of stability, growth and integration. With increased foreign investment and more agreements with dominant countries,Vietnam ultimately hopes to build market economy institutions and mechanism, developing human resources, especially high-skilled resources and integrate infrastructures to support growth (CIA).

COUNTRY TRAITS The Socialist Republic of Vietnam is located in the eastern coast of mainland Southeast Asia along the South China Sea, bordered by China, Laos and Cambodia. With an area of 329,560 sq. km, the country is about three times the size of Tennessee and slightly larger than the state of New Mexico (CIA). As a single ruling party, the Communist Party of Vietnam has remained stable since its 2016 re-election and will continue to rule for the next five years. With Nguyen Xuan Phuc as prime minister and Tran Dai Quang as president, the party aims to achieve economic growth in an attempt to satisfy the social and material needs of the people, thereby quelling discontent and demands for political and social freedoms (MarketLine 2). As of 2015, the population is 94.35 million, with Vietnamese being the officially language but English highly favored as a second language. In terms of religion, 7.9% of people identify as Buddhist while 6.6% identify as Catholic (CIA).

STABILITY

POLITICAL Since 1976, the Communist Party of Vietnam has remained very stable. With elections just being held in April 2016, this single-ruling party will remain in power for the next five years. The re-election of Nguyen Phu Trong as general secretary and the election of Nguyen Xuan Phuc as prime minister during the 12th CPV congress in January 2016 indicates the maintenance of the status quo rather than any major change in direction (iHS 34). This means the government will likely maintain a positive attitude to trade and foreign investment while also focusing on building existing good relations with China, the United States, and the European Union. Opposition to political leaders in Vietnam is illegal, causing very little threat to power but leading to many arrests of political activists. The party aims to achieve economic growth in an attempt to satisfy the social and material needs of the people, thereby quelling discontent and demands for political and social freedoms (MarketLine 17). However, recent reports have shown that policies of the CPV have become redundant and outdated, so any failure to deliver economic growth could cause a potential threat to the socialist group (ASEAN Today). According to ASEAN Today, foreign investment, development assistance and international credit cannot guarantee increasing national prosperity and a higher standard of living anymore. The growing middle class, which is expected to rise to 33 million in 2020, is developing and maturing and will likely demand more of a voice in future politics. Additionally,Vietnam has experienced low levels of local government participation, showing a decreased interest in local representatives at village, community and national levels (MarketLine 18). This indicates a weakened level of political engagement as well as fewer young people taking interest in politics. In the long run, this could lead to even more aversion of certain policies and weaken the already fraught social stability.

The territorial dispute with China over the lands of Paracels and Spratlys has carried on since the early 70s.

While Vietnam claims to have ruled the area since the 17th Century, China includes it on its map. After an installation of a Chinese oil rig 2014, tensions have only escalated with riots on both sides and will likely continue as neither country desires to reconcile (MarketLine 18). This could eventually affect trade between the two countries as Vietnamese leaders view the dispute as a threat to national security (Poling). While friendly negotiations have kept the maritime relations â&#x20AC;&#x153;under control,â&#x20AC;? Vietnam will likely stay focused on deterring their aggression while building their capacity to contest Chinaâ&#x20AC;&#x2122;s dominance over the lands.

On the other end, Vietnam continues to experience corruption in relation to embezzlement and bribery, showing the governmentâ&#x20AC;&#x2122;s failure to be transparent. With anti-corruption efforts being very ineffective, the people of Vietnam are losing trust in their government officials. In addition, much civil unrest has been caused by land seizures, only causing people the resent the government even more (MarketLine 19). Recently, the local government in Hanoi dealt with a hostage crisis in which villagers were taking local police and official that attempted to take over their land (BBC). While government agencies reserve the right to seize farmland for construction and investment projects, local residents opposed the land requisitions due to inadequate compensation.

ECONOMIC Expanding 6.7% in 2015, the economic growth in Vietnam has made it the most attractive foreign investment destination in South-east Asia (iHS 36). However, the value of the Vietnam dong to the U.S. dollar has recently decreased after the State Bank of Vietnam was forced to increase the central rate by 0.7 percent from last year (Ly). Reports from the National Financial Supervision Committee indicate that the rising inflation in recent months brought back fears about the robustness of the dong, bringing more pressure on the exchange rate (Ly). On the other hand, in an effort to compensate for the rise in inflation, a 7% rise in minimum wage is likely to be approved which would increase monthly wages to $169 (MarketLine 27). This is said to be the lowest increase since 1997 as officials attempt to compete with manufacturing powerhouses and maintain the attractiveness from foreign investors (Ta). According to the iHS Country Monitor, Vietnamâ&#x20AC;&#x2122;s exchange rate will face increased depreciation pressures in the context of anticipated interest-rate hikes by the US Federal Reserve and heightened global financial volatility. But, anticipated robust foreign investment inflows will likely help offset pressures (35).

After poor performance from stateowned enterprises in the 80s, the government has continued to try to restructure the public sector, leading to increased privatization (MarketLine 22). With the overall goal being to decrease the number of SOEâ&#x20AC;&#x2122;s in half by 2020, the process has been slow and costly, leading many to doubt the effort. However, there is heightened economic confidence in regards to trade agreements with Korea and Russia. In terms of Vietnamâ&#x20AC;&#x2122;s future, these will help diversify its industry while also decreasing its heavy economic dependence on China (MarketLine 23).

SOCIAL Unlike many developed nations, Vietnam contains a young population which helps add to its labor force and reduce social expenditure. Through funding from the World Bank and Global Partnership on Output-Based Aid, the country has been able the carry out The Vietnam Second Higher Education Project, which has helped 8,000 poor students to attend non-public upper secondary schools and professional secondary schools by providing tuition subsidies to them during 2010–13 (MarketLine 25). Though often peaceful, protests over environmental damage have become more frequent and heightened through social media (iHS 14). This leads to some altercations between demonstrators and security forces, usually causing some minor property damage. Even more clashing is caused by the lack of religious freedom and freedom of expression, as the government quickly violates those that violate these laws.

TECHNOLOGICAL

In 2012, Vietnam approved the strategy for science and development for the period 2011–20. , which aims to

increase the contribution of science and technology to economic growth by 2020 (MarketLine 28). Two of the primary targets of this include increasing the speed and innovation of technology by 20% per year and increasing the amount of officers in charge of scientific research and development. Through globalization, more cooperation is required for the development of science and technology, which Vietnam has taken full advantage of through exhibitions. MarketLine believes increasing government support and international cooperation paves the way for Vietnam to achieve its target of becoming an industrialized country by 2020 (29). However, there is concern when it comes to Vietnam’s patents, which continue to decrease. This is often indicates a lack of proper mechanisms to support invention registration, lack of experienced lawyers in patent registration and intellectual property, and the lack of interest among universities have led to this poor outcome (29).

ENVIRONMENTAL

The environmental landscape of a country plays an important role in ensuring the sustainable development of the country. Although behind, Vietnam has begun to realize the importance of environment and a sa result has started to implement policies to address issues related to it. One of the biggest environment factors of Vietnam has been its carbon dioxide emissions, which have declined in the past year. However, pollution levels in the country continue to remain high, especially in water due to the discharge of wastes from industries and households. Many cities and provinces have no centralized This has become an important challenge needing immediate attention, especially with the growth of its apparel manufacturing industry. Provinces like Binh Duong have already initiated measures to clean up the environment and it includes some strict measures to control industrial pollution. Apart from that, Vietnam is also addressing the issue of climate change. In 2015, a new $4.13 million project called Strengthening Capacity and Institutional Reform for Green Growth and Sustainable Development (CIGG) was launched in Vietnam to facilitate green investment, both domestic and international (MarkeLine). Vietnam and analysts considers the conservation of biodiversity as one of the important tasks in its effort to protect the environment. In the future, The country plans to consolidate links between national and international conservation efforts, revise its legal framework and strengthen its law enforcement capacity.

STATE OF APPAREL AND TEXTILE INDUSTRY

Despite the overall imports of Vietnam being sluggish and the failure of TPP, the country’s apparel and textile industry remains strong and a top destination for sourcing. The Sourcing Journal reports that based on data from the Vietnam National Textile Garment Group (Vinatex), the country’s total exports of textiles and garments went from $17 billion in 2012 to $28.5 billion last year, a nearly 68 percent jump in five years (Donaldson). According to the VTPA, export value of textile and garment products in recent years has been ranking number two in the country’s total export revenue, earning a major source of foreign exchange and contributing significantly to Vietnam’s gross national product and budget. Some of the unique benefits of Vietnam’s industry include small investment capital requirements, quick playback period and many preferential policies from the State due to increased employment (VTPA). The United States International Trade Administration places Vietnam as the country’s leading export sector, containing over 3,800 companies and providing everything from furniture to broadcast equipment. On a worldwide level, the country ranks fifth in textile and apparel exports and has a labor force in that sector of more than 2 million people, of whom 1.3 million are working directly in the industry (Top Markets Report). Figure 4 compares Vietnam’s quick growth in manufacturing compared to its South East Asian peers like Malaysia and Thailand. Additionally, the textile and garment manufacturing industry continues to benefit from the increasingly young, skilled population, as more people join the labor force.

1) TAL APPAREL About: For over 60 years, TAL Apparel has been the pioneer in manufacturing garments; creating processes and supply chain solutions, tailored to the exact needs of our customers. Today, we are the world leader in producing technologically advanced garments that combine superior styles, comfort and functionality. Pioneering innovation, perfecting the art. TAL Apparel elevates science to an art form, simply the art of innovation.

Abilities: Shirts/Blouses, Pants, Knitwear and Outewear for Men and Women Additional Services Offered: Product innovation by R&D, Product design initiatives by our Product Development Team, Fabric and trim sourcing, Sample development, Garment production, Supply chain services

Clients: Brooks Brothers, Calvin Klein, Debenhams, Dillards, Giordano, Hugo Boss, JC Penney, Liz Claiborne, Nautica, Ralph Lauren, Talbots and Tommy Hilfiger

Capacity: 1.5 pieces/month. 2 factories Address: Bá Thien 2, Thien Ke, Bình Xuyên,Venh Phúc,Vietnam Contact: +84 211 3551 355 Email: tuyenlaodongvinhphuc@gmail.com Website: www.talapparel.com

2) FASHION GARMENTS 2 CO LTD. About: Fashion Garments 2 Co. Ltd (FGL) is one of the pioneering apparel exporters in Vietnam. FGL was established in 1994 with 100% foreign investment. We now have 4 manufacturing facilities spread across the Dong Nai province and over 7000 employees in total. In 2014, we produced and shipped over 52 million garments to our valued customers. FGL is a subsidiary of the Hirdaramani Group of companies, Sri Lanka (www.hirdaramani.com) and LT apparel, USA (www.ltapparel. com). Our group also has manufacturing operations in Sri Lanka and Bangladesh with stand-alone sourcing offices in Vietnam, China and Hong Kong.

Abilities: Knitwear for Men, Women and children Additional Services Offered: product development, embroidery, washing,

Clients: Tommy Hilfiger, PINK, the Childrenâ&#x20AC;&#x2122;s Place, Carhartt, Adidas, Levis and Haddad Brands Capacity: 3 million pieces/month. 5 manufacturing units Address: 17th floor â&#x20AC;&#x201C; Sonadezi Building, Street No.1, Bien Hoa Industrial Zone 1, Bien Hoa City, Dong Nai Province,Vietnam.

Contact: T: +84 61 8877 400, F: +84 61 3836 125 Email: info@fashiongarments.com Website: http://fashiongarments.com/

3) CRYSTAL GROUP About: Established in 1970, the Crystal Group of Companies is a leading international garment manufacturer providing comprehensive one-stop solutions to customers worldwide. We employ nearly 70,000 people in 20 self-operating factories. Today, we are Asia’s top garment manufacturer with an enviable reputation as a trusted business partner to our customers, employees and collaborators. We will continue to build on our past to create a bright and dynamic future by strengthening our competitiveness in the following strategic areas.

Abilities: Knitwear for Men, Women and children Additional Services Offered: product development, embroidery, washing,

Clients: Victoria Secret, Levis, Gap, Uniqlo, M&S Capacity: 5 million pieces/month. Address: Khu Công Nghiep Nam Sách, QL37, Tp. Ha i Du o ng, Ha Du o ng,Vietnam Contact: +84 320 3574 168 Email: customer-services@crystalgroup.com Website: http://www.crystalgroup.com/

CULTURAL INSIGHT

As a whole, the Vietnam culture values tradition and respect, especially in business relations. Although English is the preferred second language in Vietnam, many feel more comfortable using their native language while conducting business. One of the greatest gestures of respect is translating written materials into Vietnamese (PWC 6). When referring to a Vietnamese individual, it is appropriate to address them using his or her given name with their appropriate title (ANZ). Being that Vietnamese are big on relationships, face-to-face meetings are important as well as respect of seniority. Like several Asian countries, sharing meals together is a popular form of meeting for it shows the investment of time in building solid relationships both on a business and personal level (ANZ). According to the Vietnam Trade Promotion Agency, it is customary to present business cards at the beginning of meetings using two hands; one to exchange handshakes and the other to exchange cards. It has become custom for both men and women to shake hands, but the person with the most seniority shows their hand first.

One of the most important factors for conducting business in Vietnam is the tradition of “face,” a concept that

encompasses everything from reputation, social standing, dignity and individual honor (Vietnam Guide). The guide also claims that “losing face” is an action to cause someone to look down in front of their friends or community and “building face” is the process of making someone feel good in front of others. The many factors related to “saving face” are all in an effort to show respect for the parties involved. For instance, when a Vietnamese person disagrees, they are likely to remain silent rather than voicing their opposition during a meetings. Offering indirect advice or solutions is far more effective than direct criticism, which is considered quite severe in Vietnam (VietTrade).

When conducting business, the Vietnamese value their time in decision making and require patience from all

parties involved. While the processing legal documents and permits is already time consuming, negotiations make also take a considerable amount of time due to group consultation (ANZ). This may then lead to Vietnamese companies wanting to take more time to improve their terms and even re-negotiate (Export.gov). Although, exporters normally understand the importance of prompt action or punctuality, deadlines are not always strictly observed, sometimes due to inexperience or lack of information needed to make a decision in time (VietTrade). Adequate time should be allotted not only in negotiations, but other considerable factors such as travel and license approvals. Finally, the Vietnamese are big on keeping word and following through on all promises. This may be in the form of providing additional informational or sending a thank you card to partners and officials (VietTrade).

TRADE AGREEMENTS Currently, Vietnam has no free trade agreements with the United States. The countries’ relationship would have greatly been strengthened by the Trans-Pacific Partnership, which was first signed in February of 2016 and was the largest regional trade accord in history (Granville). Other partners include Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, and Singapore, as shown in Figure 1. Starting with a group of like-minded countries, the goal was to expand the agreement to include countries across the Asia Pacific, which together represent more than half of global output and over 40 percent of world trade (USTR). Specifically,Vietnam’s textile would have reaped the greatest reward with slashed tariffs among the participating nations (Davis). After ongoing negotiations, the United States decided to withdraw on January 23 of 2017, leaving many uncertain about the future growth of Vietnam’s textile and apparel industry. Since 1995, Vietnam has been a member of ASEAN (the Association of South East Asian Nations), which currently contains ten nations; Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Cambodia, Laos, Myanmar, and Vietnam. Later, it joined the ASEAN Free Trade Area (AFTA), which seeks to increase ASEAN's competitiveness as a global production base, through the elimination of tariff and non-tariff barriers within ASEAN, and through attracting more foreign direct investment to the region (IBP 105). In addition, the republic signed a free trade agreement with Chile in 2014, making it the first Latin-American state to do so (WTO). In January of 2016, a free trade agreement with Korea came into effect, allowing textiles and garments to enjoy tariffs of 0% instead of 8-13% (Thu). Furthermore, in 2016, Vietnam joined into the Russian-led Eurasian Economic Union free trade zone, which is predicted to save the country $5-10 million a year (ARIC). Combined, these agreements will not only contribute to foreign investment and economic growth, but will lower government spending and create a more dynamic business climate.

TRANSPORTATION Being such a coastal based country, Vietnam operates many ports. However, the largest of these ports on an international level are Saigon, Port of Ho Chi Minh City, Hai Phong and Da Nang (World Port Source). Zim Integrated Shipping services offers routes from Ho Chi Minh City to Savannah in 32 days, only shipping full containers. The current moving rate for a 40’ container is roughly $2,600 all-in, with container sizes being 7’8” wide and 8’6” tall. Additionally, Mediterranean Shipping Company offers shipping from Vung Tau to Savannah in 40 days, Da Nanag to Savannah in 47 days and from Saigon to Savannah in 34 days. The current moving rate for a 40’ container with this company is $3,090, with the container size being 8’ wide and 7' 9½" tall.

PRODUCT CLASSIFICATION

The harmonized tariff schedule code for knit dresses is 6104.43.20.10. This code places it under dresses made of synthetic fibers and not containing 23 percent or more of by weight of wool or fine animal hair. Under this classification, the general rate of duty is 16%. Our products were womenâ&#x20AC;&#x2122;s dresses including four different categories: T-shirt dress, Maxi dress, Bell sleeve dress and skater dress. Products were under womenâ&#x20AC;&#x2122;s dresses of other because our material was modal.

LEAD TIME OF PRODUCTION Being that Vietnam is an agricultural country, they devote much of spring and autumn towards festivals in an effort to bring them closer to Mother Nature and the motherland. Occurring during the country’s “leisure time,” some of the national holidays include the Lunar New Year (Tet Nguyen Dan), July Full-Moon, August Full-Moon or Hung Kings Festival (Vietnam Embassy). Perhaps the biggest of these is the Lunar New Year, which occurs in either late January or early February. The New Year Eve is the most sacred moment for it’s the opportunity for family members to worship and pay tribute to gods and ancestors. The following day, or New Year, families come together to enjoy traditional food, visit relatives and loved ones (Embassy). These traditions will cause production to be slightly lower during this time.

At the same time, Vietnam experiences many natural disasters throughout the year that greatly affect the urban

and rural poor, farmers and coastal communities. Due to their large coastline, many of these include floods, typhoons, landslides, earthquakes and droughts, exposing nearly 70 percent of the population (World Bank). Typhoon season can extend from May until December while monsoon season while monsoon season is separated between northeast and southwest; northeast from October to late March and southwest from April to September. The World Bank claims that Vietnam loses 1-1.5 percent of GDP annually due to natural disasters, which hinders the social and economic development of the country. Since Vietnam is situated in a high risk location, there is a constant need to adapt to climate change in order to mitigate the effects on its development progress (Give2Asia). Furthermore, the country is currently facing a water shortage issue, which the TTP would have helped through increased investments in water treatment plants (Donaldson).

RISKS AND BENIFITS

Vietnam has experienced steady growth over the last few years, becoming one of the most attractive countries in Southeast Asia for foreign investment. Despite some of the economic challenges within the Asian market,Vietnamâ&#x20AC;&#x2122;s GDP continues to increase (6.7% in 2015) with the help of government support. A lot of Vietnamâ&#x20AC;&#x2122;s strength has lied in its power as a single-ruling party, causing very little threats to authority. However, with a growth middle class that is becoming skilled and more educated, the outdated policies of the socialist party could lead even more civil unrest as they will likely demand more of a voice. And with less interest and engagement in local politics, this could lead to aversion of certain policies and weaken the social stability even more. On the other hand, the rise in education and training combined with cheap labor makes Vietnamâ&#x20AC;&#x2122;s manufacturing sector even more appealing and the growth of its labor force promising. Its textile and apparel industry continues to grow as the country ranked fifth in the world for exports. Some of the unique benefits of its industry include small investment capital requirements, quick playback period and many preferential policies from the state. Although the Trans-Pacific Partnership is at a halt with the United States, Vietnam may still experience the benefits of slashed tariffs with other participating countries as negotiations continue. As a whole,Vietnam must place more focus on the environment as well as its people in order to support its growth and prevent less protests and opposition. In result, this will strengthen the abilities of its government even more, create a more sustainable manufacturing industry, and make the country more appealing overall.

CONCLUSION

Despite the uncertainty caused by the failed TPP, Vietnam has shown their plan to remain on top as their foreign appeal strengthens. Their shown interest in not only science and technology but the development of their young population confirms their eagerness to continue to modernize and progress in all markets on all levels. Of course with this and many opposition laws, there is civil unrest among its people, which has the potential to be its greatest threat to growth. But small changes and efforts from the government continue to help settle these disputes and focus on the continued goal of national construction and advancement. In order for it to remain in their heightened position and achieve their goals of transparency and integration, they must show more focus on the needs of its people in order to fully progress.

PERU

With todayâ&#x20AC;&#x2122;s high prices of manufacturing apparel in the United States and the lack of many domestic options to choose from, most apparel companies have chosen to outsource their manufacturing to other countries in search of lower costs, higher quality, and more options. Choosing to manufacture outside of the US is not as simple as merely choosing a country, however. There are a variety of economic, social, legal, regulatory, and environmental factors (to name a few) that need to be considered before a company agrees to do business in any country. When sourcing overseas, the benefits received, most often lower costs, must be greater than the costs and potential risks. Before a major investment is made in moving manufacturing, a company must analyze the country from many different angles in order to determine the safety and viability of said investment. As Asia becomes more expensive and, in some areas, less stable, Peru is a quickly growing manufacturing hub that many retailers are considering or have chosen to source within. However, any location has pros and cons, and this report will analyze Peruâ&#x20AC;&#x2122;s pros and cons, both as a country and a source for manufacturing apparel, through the lens of a womenâ&#x20AC;&#x2122;s knit dress company.

COUNTRY TRAITS

The Republic of Peru is located in northwestern South America, bordering the Pacific Ocean between Chile and Ecuador. The majority of the 496,225 square-mile country lies within the Andean region (CIA). The government of Peru is classified as a presidential republic, with current President Pedro Pablo Kuczynski and current Prime Minister Fernando Zavala Lombardi. The official language of Peru is Spanish, although some regions maintain Quechua and Aymara as official languages. Peru maintains its own currency, the Sol (PEN). The current exchange rate is estimated at 3.63 PEN to one USD, with the US dollar becoming steadily stronger against the sol for the last five years (CIA). Peru is a country with vast national resources, including copper, silver, gold, petroleum, coal, and iron. The current population of Peru is estimated at 31.2 million, with 45% being ethnically Amerindian and 37% being Mestizo (CIA). The literacy rate in Peru has risen to 94.5% as of 2015, but remains lower, particularly among women, in rural areas (CIA). The majority of the population lives in the Andean highlands region.

STABILITY

POLITICAL

The country of Peru has a rich ethnic history, being the seat of multiple Andean empires, most notably the Inca. Beginning in the 16th century, Spanish conquistadors, recognizing the vast resource reserves, began colonizing the area, and Peru did not gain its independence from Spain until 1821. Since its independence, Peru has experienced a very tumultuous political climate. Until the 1990s, the government of Peru was largely unstable, with a number of violent extremist coups and guerrilla movements, the most notable being that of the communist party Sendero Luminoso. Currently, the country is enjoying a relatively new but stable democracy under the leadership of President Pedro Pablo Kuczynski. The country has experienced years of corrupt government and social unrest, although the current government has shown significant improvements in stability and economy. While the government has remained somewhat stable, the judiciary can only be described as weak and corruption is irrefutable within the administration. Furthermore, local government functions highly inefficiently, leading to infrastructure issues, among others. International companies doing business in Peru have also struggled in dealing with the bureaucratic inefficiencies of the government.

ECONOMIC

The government over the past two decades has managed to facilitate a high level of economic growth, and since 2003 Peru has achieved the highest economic growth rate within the Latin American region (CIA). The country has managed to keep both the rate of inflation fairly low at 3.4% and the exchange rate stable during this phase of rapid growth. Poverty has decreased substantially in the last ten years, especially with the dramatic increase of urbanization, but an estimated 25% of the population of Peru still lives in a state of abject poverty, with rates as high as 50% in rural areas (CIA). The country’s growth has created substantial economic inequality and wealth disparity, which has magnified within the last decade. The vast majority of Peru’s economic GDP, which is estimated at $409.9 billion, 48th in the world, comes from mining and natural resource exports (CIA). This strong reliance exposes the country to a fair amount of economic risk, as the prices of these resources tend to be highly variable and unpredictable. In recent years, however, Peru has invested in its growing tourism industry in an attempt to diversify, with tourists coming from around the world to visit the Andes and Incan ruins, most notably Machu Picchu. Peru’s economic relations with other countries have been rapidly growing, and the country is part of over twenty trade agreements, including a free trade agreement with the United States, as well as the Trans-Pacific Partnership. These trade agreements have increased Peru’s GDP substantially and created exponentially higher growth with the country. Despite growth, public debt remains low (World Bank), and GDP is expected to continue to grow at a slightly slower rate due to uncertain mining export prices during the next decade. (Exhibit 3)

SOCIAL Socially, the country has a rich ethnic background, including being the seat of the Inca empire, as well as a number of Andean and rainforest ethnic groups. The majority of the population is still of Amerindian descent, although marginalization of this group is undeniable, particularly in rural areas, where access to education and infrastructure is poor. Culturally, however, their influence is becoming more celebrated, particularly as Peruâ&#x20AC;&#x2122;s tourism industry grows. Peru deals with an increasing presence of organized crime and drug trafficking, specifically in its major cities. The country is the number two producer of the coca leaf, which is used to produce cocaine, and its shared border with Colombia provides access to the country for Colombian drug cartels (CIA) in addition to a population with a growing middle class and increasing disposable income (Business Insider). The presence of a major Pacific Ocean port at Callao, makes Peru an easy target for drug trafficking. Furthermore, drug cartels have become more powerful and successfully infiltrated state institutions, allowing for corruption (Business Insider).usually causing some minor property damage. Even more clashing is caused by the lack of religious freedom and freedom of expression, as the government quickly violates those that violate these laws.

TECHNOLOGICAL From a technological standpoint, Peru is a country on the rise. Industrialization has been occurring at a rapid rate in recent decades, and the country is being recognized as a highly viable manufacturing location by many international companies. Peruâ&#x20AC;&#x2122;s workforce size of 17 million (IDEA) is a prime reason for this phenomenon. Within the last decade, fabricated metal products, petroleum products, and textiles have become Peruâ&#x20AC;&#x2122;s two biggest manufacturing exports (CIA). While costs to foreign companies are still fairly low for manufacturing in Peru, the protection of intellectual property has been poor in the region (export.gov), creating problems for those outsourcing in the region.

ENVIRONMENTAL Environmentally, the country falls in a wide range of climate zones and is therefore rich in natural resource reserves. These resources, however, have not been well protected, largely due to inconsistent government, corruption, and a focus on economic growth above all else. Resource acquisition has often been mismanaged and performed in an unsustainable way, with little regard for environmental protection and preservation of the natural infrastructure. As a direct result of this, air and water pollution have become major problems within the country, particularly as mining and manufacturing increase. Furthermore, deforestation of rainforest areas and overgrazing have occurred due to the rising presence of ranching. While activists are beginning to be heard and measures are being put into place to protect these valuable ecological areas, the growing economy still takes precedent, and many of these areas, particularly the rainforest, will likely decrease dramatically in the next decade unless considerable changes are made.

STATE OF APPAREL AND TEXTILE INDUSTRY Peruâ&#x20AC;&#x2122;s growing textile industry has seen increased interest from the global apparel industry in the last few years for a number of reasons. Civil instability in Asian countries known for low-cost labor is rising, and Latin America has become a newfound focus. Furthermore, the country enjoys a free trade agreement with the United States, among other countries, eliminating the presence of tariffs, which increase the price of textile goods substantially. Moreover, the industry receives recognition and support from a number of trade organizations and blocs including Mercosur, the Union of South American Nations (UNASUR), the Asia Pacific Economic Cooperation, the Andean Community, the Global System of Trade Preferences among Developing Countries, and the World Trade Organization, to name a few. The vast majority of the Peruvian textile industry is based in knits, and the country is known for fast, high-quality manufacturing with minimal compliance issues (Donaldson). Cotton is the natural choice for Peruvian manufacturers, as Pima cotton is grown within the country, with close proximity to manufacturing facilities. Blends are also very prevalent in the textile industry of Peru, most notably modal, polyester, Supima, and tri-blends (Donaldson). Due to the widespread use of cotton, many factories are equipped with the machinery necessary for finishing and processing required, which is also seen as an asset by foreign purchasers (Donaldson). Seeing the value of becoming a high-quality manufacturer of textile goods, the Peruvian apparel industry has invested in quality and building expertise in an attempt to set themselves apart from other popularly-sourced countries.

Aside from higher quality manufacturing than many of its Asian counterparts, Peru is seen as a much easier coun-

try in which to do business, and communication is touted as easy and flexible (Donaldson). Additionally, the standards for labor and facilities are generally very high in Peru, which has grown in importance to both businesses and consumers in recent years. The Peruvian government has instituted bi-annual inspections of factories to maintain compliance (Donaldson), and many factories in the industry exceed the basic standards required by the industry. Among unskilled workers in Peru, the minimum wage comes out to about $300 monthly (Donaldson).

1) TEXTIL DEL VALLE S.A. About: Textil del Valle is regarded by Sourcing Journal as one of the top manufacturers in all of Peru. Specializing in knits, the company offers a wide range of products in cottons, blends, and other fibers, including modal. High social and environmental standards are at the forefront of their business model, as evidenced by water and waste treatments on ground, the company’s status as the first Peruvian company to achieve ISO 14001, and a WRAP certification.

Abilities: Knitwear for Men, Women, Children Additional Services Offered: dyeing, product development, extensive hi-tech finishing techniques Clients: Polo,Vineyard Vines, Calvin Klein, Lucky,Victoria’s Secret, Burberry, Lacoste Capacity: 650,000 garments per month Address: Pasaje Los Delfines Nº 159, 3rd Floor, Urb. Las Gardenias Santiago de Surco, Lima 33, Peru Contact: +51 (1) 217-0900 Email: ontact@textildelvalle.pe Website: http://www.textildelvalle.pe

2) INDUSTRIAS NETTALCO S.A. About: Industrias Nettalco is a vertically integrated manufacturing option that is known for state of the art production. The company produces an estimated 6% of Peruâ&#x20AC;&#x2122;s monthly knit exports and is known for high transparency and adherence to ethics standards. Industrias Nettalco has been certified by WRAP and Oeko Tex Standard 100.

Abilities: Knitwear for Men, Women, and Children Additional Services Offered: Integrated planning system, knitting, dyeing, finishing Clients: Lacoste, Hanna Andersson, Calvin Klein, Armani Exchange, L.L. Bean Capacity: 1 million garments per month Address: Calle Cinco, 115 Urb,Vulcano, Lima, Peru Contact: T: +51 1 3480264 Email: foz@nettalco.com.pe Website: http://www.nettalco.com.pe

3) TEXTIL DEL PACIFICO S.A. About: Textil del Pacifico is a vertically integrated manufacturing operation that is known for hi-tech finishing capabilities and has been noted as one of the top ten manufacturing facilities in all of Peru. The company has been certified by WRAP, and is highly transparent with regards to audits from many of its large-account clients.

Abilities: Knitwear for Men, Women, and Children Additional Services Offered: knitting, cutting, sewing, hi-tech finishing Clients: Vince, Under Armour, Urban Outfitters, Eddie Bauer, Chico’s, Land’s End Capacity: 1.4 million garments per month Address: Av. Guillermo Dansey N° 1873, Lima 01 – Perú Contact: +51 1 336-8174 Email: intexpac@intexpac.com Website: http://intexpac.com

CULTURAL INSIGHT According to the World Bank, Peru ranks number 43 in easiest countries in the world to conduct business in, and is the second easiest and second safest in Latin America, based on government, stability, and business climate. When conducting business in Peru and with Peruvian companies, there are a number of things one should know and understand in order to ensure the success of the negotiation and business relationship as a whole. First, the United States International Trade Administration recommends finding a local liaison to help build a business network within Peru and aid in negotiations (Export.gov). Furthermore, having local legal counsel greatly increases a foreign companyâ&#x20AC;&#x2122;s chances of being able to navigate the legal workings of Peruâ&#x20AC;&#x2122;s business and bureaucratic system of operations. While English is not widely spoken in Peru outside of the upper class, and Spanish is the language of business, most business professionals and factory owners speak English. Outside of major cities, a knowledge of Spanish or interpreter may be necessary. First impressions are vital in business in Peru, and as far as presentation goes, the rules of business dress are formal and traditional, meaning suits and ties for men and suits or dresses for women are almost compulsory (Starwood). Addressing business associates by their proper, formal titles is considered respectful and should be noted during negotiations.

The notion of “personal space” is not as culturally relevant in Peru as in the United States, and Peruvians tend to stand, sit, and interact at a much closer distance than Americans, which should be respected when conducting business (Export. gov). Peru can be described as a poly-chronic culture, and time-keeping is viewed in a much more lenient manner than in the United States. Showing up right on time for business meetings is not expected within Peru for locals, and showing anger or frustration at meetings starting late can be seen as cultural intolerance (World Bank). Social meet-ups and parties, which are a critical part of many business relationships in Peru, also are not expected to begin exactly at the time indicated and showing up early or on time can even be a surprise and an inconvenience to the host. The idea of “machismo” is still an ingrained part of Peruvian culture (Starwood). Machismo is a strong sense of male pride and superiority, at times to the point of being exaggerated. While larger cities such as Lima are beginning to see the upheaval of traditional gender roles and are allowing women to gain more power and respect within the business world, the inequality is still visible, especially outside major cities. When doing business in Peru, it is important (for women especially) to keep this in mind. Foreign women in business can expect to be treated with respect, but will sometimes run into machismo attitudes in doing business. Peruvians value building relationships and enjoy getting to know their business partners, so the impersonal American “cut to the chase” meeting approach can be viewed as overly aggressive in Peru, and taking some time to converse and get to know one another before negotiating is the norm. Furthermore, business in Peru should be conducted in-person, rather than over the phone or email, especially near the beginning of a business relationship (Starwood). Loyalty runs deep in the Peruvian business culture, so price is not always the most important aspect in decision-making, as it often is in the United States (Valcarcel). Americans should take this into account in order to promote the value placed on the relationship, as well as to not come off as hostile. In preparing for negotiations in Peru, one must keep in mind that the business culture is not as direct in that of America, and often “reading between the lines” and being able to use context to do so is important. Negotiations generally take more time than in the US and can involve more small talk and getting to know one another, so one should expect to spend more time negotiating. Generally, negotiation is cooperative, and aggressiveness is frowned upon in most negotiation situations, as relationships and maintaining personal pride are important (Valcarcel). Foreign business is welcomed by Peruvian companies, however, which can be leveraged in negotiations (Valcarcel).

TRADE AGREEMENTS

Peru is a member of a number of trade agreements, both within and outside South America. With regard to the United States, Peru finalized an agreement with the US government in February of 2009 called the United States-Peru Trade Promotion Agreement, or PTPA. The PTPA is an across-the-board free trade agreement, which allows goods to be transported from Peru into the United without being charged a duty and vice versa. This agreement not only increases trade between the two countries and gives Peru an edge over many other countries without free trade agreements, but also cuts down on costs to companies having goods manufactured in Peru significantly. The agreement has been distinguished for increasing the amount of exports to the US and boosting industry with in Peru substantially. Not having to pay a tariff on imported goods lifts a substantial burden for US companies who choose to manufacture textiles in Peru, which will in turn help further develop the country’s burgeoning textile industry.

Products shipped to the United States from overseas are classified using HTS, or the Harmonized Tariff Sched-

ule. Our company is planning to ship women’s modal knit dresses into the United states, and the HTS code would be 6104.43.10.10. This corresponds to knitted or crocheted dresses (6104) made of synthetic fibers (.43), in the women’s category (.10). Assuming the goods are imported from a country without a free trade agreement, the tariff rate would be 16%. According to the US Customs Department website, modal is classified as a synthetic fiber comparable to rayon.

TRANSPORTATION

The largest and most important ocean port in Peru is Callao, which is fully integrated with the city of Lima and is located on the Pacific Ocean and services most of the countryâ&#x20AC;&#x2122;s manufacturing industry (iContainers). The second most important port in Peru is Iquitos, which is located on the Amazon river, and is critical to the rubber industry. The port of Matarani is the countryâ&#x20AC;&#x2122;s second southernmost Pacific port, and the second busiest (iContainers). Paita is an important northern port and deals with agricultural and mineral exports (iContainers). Our company is located in Savannah, Georgia, which has a major US sea port, and all of our potential Peruvian manufacturers are near Lima, so Callao and Savannah are the obvious choices. Many companies service these two ports, including Maersk and Mediterranean Shipping Company (MSC), and a trip from Callao to Savannah with a stop in Manzanilla, Dominican Republic, would take about twelve days and cost about $1900 using Maersk.

LEAD TIME OF PRODUCTION

Due to varying climate regions and varying topography, Peru is exposed to a high level of environmental risk that can affect lead time for production, particularly if climate change progresses. The Andes mountain range and corresponding fault line, not to mention an ocean border, pose both an earthquake and a tsunami risk. Furthermore, El NiĂąo has been known to create heavy and unpredictable rain in the region, triggering widespread flooding and deadly landslides, the effects of which will likely increase due to global warming. These potential natural disasters could no doubt cause problems for manufacturing facilities, ports, and transportation. With the strong prevalence of Catholicism in Peru, a number of national holidays are observed, particularly around Easter week (World Travel Guide), but the country of Peru only has two more official holidays than the United States, and the effect on lead times would not be considered substantial. The presence of drug cartels could be considered a risk for companies doing business in Peru however, particularly near the Colombian border or ocean ports, as cartels have been known to interfere in business transactions and transportation methods.

PRODUCT CLASSIFICATION

RISKS AND BENIFITS Manufacturing in Peru presents a number of risks and benefits. Of the benefits, perhaps the most notable is the presence of a free trade agreement and absence of tariffs. Additionally, the country is a great deal more politically and socially stable than other manufacturing destinations. Because labor standards are high and enforced by the government, labor rights disputes occur much less often than other countries. Furthermore, workers are generally treated and paid much better than other countries, and as todayâ&#x20AC;&#x2122;s business world moves toward supply chain transparency, companies can not only provide transparency to their customers and shareholders, but also feel confident that manufacturing employees are being treated well on their behalf. Peru as a nation has invested in its manufacturing growth, and aside from the consequentially better technology in factories, the quality of work produced by mills and factories in Peru is considered to be much higher. Many of the companies that source knits in Peru are within the high-end and luxury spheres, indicating a high level of excellence and compliance.

Like any country, however, there are some definite downsides to manufacturing in Peru. The textile industry is

fairly specialized in cotton products and knits, so acquiring a broad range of textile products can be difficult. In addition, the country is in a geographic location which creates a high exposure to natural disasters, which can result in increased lead times and even loss of product for a manufacturer. The countryâ&#x20AC;&#x2122;s government is fairly new, and has not been considered stable by the rest of the world for very long. In addition to being new, areas of the Peruvian government, particularly regulating bodies, have been touted as highly inefficient and difficult for outsiders to deal with, causing problems for foreign companies. Although the country is projected to maintain its current government and state of stability, there is a history of violent extremism which could reappear. Also, the presence of drug cartels and trafficking through the country and its ports poses a slight risk to buyers, although not a highly substantial one. The very real benefits to manufacturing in Peru seem to outweigh the risks, however, most of which are purely hypothetical.

CONCLUSION

Although a fairly new player in the textile manufacturing scene, Peru is no doubt one to watch. With comparatively low prices, high quality, and relatively low rates of risk and instability, as well as a free trade agreement, it is no wonder that many American companies are moving their manufacturing to Peru. Successfully combining a large workforce, investment in industry, and friendly business climate, the country provides a very inviting prospect as a sourcing destination. Furthermore, the industry is mostly founded on decent business practices and solid government regulation regarding factory workers and safety, meaning that American companies can feel good about doing business in Peru. While there are risks to sourcing in any location, it seems that the benefits of doing business in Peru vastly overshadow the threats, and the country will no doubt become a much bigger player in the textile manufacturing world in the years to come.

TURKEY

Turkey is one of the main textile and clothing manufacturers’ country in the world. Therefore, we consider that Turkey can become a great potential supplier of our new women’s wear company: Artemis. According to the ministry of economy report, textiles and clothing are main exports among the Turkish economy, accounting for 7% of the GDP together. (2016) These two sectors continue to grow due to several reasons such as the Turkish government support, general economic development and growth rapidly in clothing industry bring lots of benefits to the country. These reasons cause Turkey becoming an ideal candidate of supplier. However, the country also faces many current challenges such as political uncertainty, security risks, violence against women, weak labor laws and low education level may influence its economic environment and obstruct our company’s business future development. Therefore, if we plan to produce women’s dresses in Turkey, it is important to realize the country’s current situation in the apparel and textile industry and estimate its value of manufacturing our merchandises in the future.

COUNTRY TRAITS Geographical Location: Turkey is located between Asia and Europe. The country is surrounded by the Mediterranean Sea, the Aegean Sea, the Sea of Marmara and the Black Sea. It shares its borders with Greece, Bulgaria, Iran, Iraq, Syria, Armenia, Russia and Georgia. Full Name: Republic of Turkey Capital City: Ankara Government Type: Republican parliamentary democracy Head of State: President Recep Tayyip Erdogan Population (2015 est.): 79.41 million Currency: Turkish lira (TRY) GDP Per Capita (PPP) (2015 est.): $20,500 Major Religions: Muslim 99.8% (mostly Sunni), other 0.2% (mostly Christians and Jews) Country Area: 783,562 sq.km (=8.434191e+12ftÂ˛) Time Difference: +7 hours (between New York and Istanbul) Languages: Turkish (official), Kurdish, other minority languages Education Level (2014 est.): Only 17% of the population aged 25-64 had attained tertiary education Exports: Apparel, foodstuffs, textiles, metal manufactures, transport equipment Imports: Machinery, chemicals, semi-finished goods, fuels, transport equipment

STABILITY

POLITICAL Turkey was the membership of many international organizations such as North Atlantic Treaty Organization (NATO), The European Union (EU) and Organization for Economic Co-operation and Development (OECD). (2016) The country’s geographical location made Turkey become the organization’s main eastern anchor and it controlled the straits between the Black Sea and the Mediterranean Sea. In other words, it played an important role on connecting political and economic development between the Europe and Asia. According to the report of MarketLine, Turkey also held membership of the United Nations (UN), the World Trade Organization (WTO), the Euro-Atlantic Partnership Council, the Group of 20 (G-20), the International Monetary Fund (IMF), the World Bank and the Organization of Islamic Cooperation (OIC). Although Turkey has these current advantages, it still exists some security risks such as the activities from separatist Kurdish militants and jihadi group IS. Political uncertainty is another challenge. In 2016, there was a failed military coup attempt caused hundred people dead and thousand people injured. Elements in Turkey's armed forces attempted a coup to seize control of the government led by President Recep Tayyip Erdogan. (USA Today) More and more people opposed President Erdogan due to his deviation from the democracy to dictatorship and Islamic conservatism. Besides, the potential conflict between Middle East countries such as Syria, Egypt, Israel and Iraq also influenced Turkey’s international standing. Freedom of press is the other problem existing in Turkey. The newspaper and journalists were limited on freedom of information. In the future, the government had to consider how to enhance country’s security and improve its strained relationship with other surrounding countries to prevent Turkey from political problems. Political uncertainty will make investor lose confidence lead to depreciation pressure on the lira and stoke inflationary pressures in the economy. Also, President Erdogan will bring enormous effect to the country’s development if he wants to implement personal ambitions and establish a presidential system to become more powerful. His Justice and Development Party is pushing an Islamist agenda and eroding Turkey’s Euro–Atlantic relations by striking on freedom of speech and the media. It may change Turkey’s current political stability.

ECONOMIC Although Turkey faces an ongoing political turmoil, its economy has maintained overall stability. Fiscal policy was prudent and had kept budget deficits and public debt under control, but inflationary pressures had increased.The financial sector remained stable and competitive. (2017 Economic Freedom) According to the report of MarketLine, the government earned a revenue of TRY483.4 billion ($158.7 billion) in 2015 based on the ministry. It increased 13.6% comparing to 2014. (2016) The country’s GDP continued growing which increased 2.9% in 2016 compared to 2015. Turkey was also number 17 in the ranking of GDP of the 196 countries in 2016. (Countryeconomy.com) A low fiscal deficit had helped the government in retaining its debt profile’s sustainability. The country continued actuating The Tenth Development Plan (2014-2018) to improve global position of Turkey, rank among high income countries and solve the poverty problem. In accordance with this purpose, by 2023, it is aimed to increase GDP to 2 trillion dollars and GDP per capita to 25,000 dollars; to raise exports to 500 billion dollars; to reduce unemployment rate to 5 percent and to pull down the inflation rate permanently to lower, single digit levels. (Ministry of Development) However, the challenge of Turkish economy was its high current account deficit due to the short-term investments and debt. This problem made the economy be affected easily by global financial variation. Also, political developments affected prospects for economic growth in Turkey since the second half of 2016. Bureaucratic red tape and ineffective enforcement of regulations continued to be substantial drags on entrepreneurship. The rigidity of the labor market limited the emergence of a more dynamic economy. According to Yahoo Finance, the current exchange rate of TRY to USD was 1 US dollar could change 3.6 Turkish Lira on May 17, 2017. US dollar still maintained advantages and it was beneficial for the US company to invest business in Turkey. In the future, the country’s GDP will continue growing slowly.The Turkey’s economy will remain competitiveness due to the decline of Turkish Lira and continuous recovery of EU’s economy. Exports also grow faster than imports due to strengthening economic activity in the EU. Although political instability, intense relationship with surrounding countries and increase of inflationary pressures slow the economy’s growth, the general country’s economic environment is still positive.

SOCIAL According to the CIA – The World Factbook in MarketLine’s report, Turkey has one of youngest population in Europe with the average age of 30.1 years in 2015.The 15–64 age group accounted for 67.5% of the Turkish population. (2016) In other words, when most European countries faced the problem of an increase in the average age of its population,Turkey had a strong advantage to enhance its employment rate by young labor. However, there are some current challenges. For example, one problem is weak labor laws. According to the European Commission in MarketLine’s report, there were approximately two-fifths of the labors on general industry didn’t own full protection under the labor laws, without payment for overtime working hours, unjustified terminations and limitations on the usage of annual leave. Although the government passed a new law on Trade Unions and Collective Agreements under pressure from international organizations (2016), the country still needed to improve its labor laws to create a more efficient labor market. The other challenge was the lowest tertiary education rate. It decreased the skilled employees’ availability. However, the government started several policies to improve the social benefits for its people such as the Instrument for Pre-Accession Assistance on Rural Development (IPARD) to improve rural areas’ social conditions and create employment opportunities in rural areas. (2016) In addition, there had been several cases of violence against women such as physical violence and domestic abuse in Turkey. It exceeded most European countries and the US.Those cases continued to grow in recent years and the plight of Turkish women didn’t have too much improvement. In Turkey, women are treated as second-class citizens. In the future, young population will become Turkey’s advantage because they can provide Turkey numerous labor requests and create employment opportunity to decrease unemployment rate. Besides, the government starts overhauling social policies to improve employment environment and eliminate child labor. However, low tertiary education drives down the availability of skilled employees in Turkey. Crimes against women also influences women labors’ safety and opportunity of work environment. It may become more difficult if we want to develop our business which support women right. The government should think about how to improve tertiary education rate and women’s labor environment to create a social system more friendly.

TECHNOLOGICAL The Turkish technological was strong in ICT (Information and Communication Technology). Due to the privatization of the Turkish telecommunications sector, the ICT sector’s progress had expanded the scope for employment and provided investment opportunities for domestic and foreign investors. (MarketLine) In addition, the government continued encouraging to improve R&D (Research and Development). The country had given encouragement to foreign entities, prominent universities, and research organizations to foster a culture of innovation.Therefore, the government promoted a project on science and technology called Vision 2023 during 2003–2023. (MarketLine) There were some initiatives such as establishing science and technology centers and encouraging e-commerce in the country. The purpose of project was to develop new national science and technology policies, promote and encourage innovation such as increasing the ICT sector’s share to 8% of GDP and computer literacy to 80% of the population. (2016) In the future, the country will invest the technological part positively due to the government’s Vision 2023 strategy. If the country can improve the technology side, it will be beneficial to the country development and economy. For us, technological improvement may bring the innovation to the garment manufacturers and produce the garment with better quality and more efficient method.

ENVIRONMENTAL Turkey has strong environmental policies and its environmental laws have been modernizing because it is part of EU accession initiatives. Local municipalities played important roles on recycling, waste sewage treatment, water purification, solid waste management, and environmental remediation. The environmental policies of Turkey emphasized energy efficiency and most of the EU laws had been implemented in this area. (MarketLine) The country generated electricity through The Energy Efficiency Law and the Law on Utilization of Renewable Energy Resources in order to promote energy efficiency and the use of renewable energy.Turkey also had the lower tax rates for natural gas, liquefied petroleum gas, and biodiesel. However, the country was ranked in the 99th of 180 economics due to poor performances in environmental health and the conservation of biodiversity according to the 2016 EPI rankings report. (Global Metrics for the Environment) In other words, although Turkey improved its environment a lot than before, the country not performed well enough comparing to some countries such as Greece or Syria. Therefore, Turkey needs to continue strict environmental laws to improve its overall environmental performance.

STATE OF APPAREL AND TEXTILE INDUSTRY Therefore, Turkey would be an ideal country for our brand to manufacture dresses. To support the industry, the government also had launched “Turquality.” It was a program developed to improve in marketing, quality upgrade and strategic positioning. To enhance awareness of Turkish fashion in worldwide market, many Turkish clothing companies participated in fashion shows and international fairs. In 2017, the Turkish apparel industry represented 35,000 manufacturers. (Buying and Sourcing in Turkey) On the labor cost, the garment workers earned 300 euros ($328) per month on average. (2014) Besides, the statutory minimum wage in Turkey was raised by approximately 30 percent in January 2016. (2017 Economic Freedom) It meant that Turkey had higher labor cost than before. Comparing to some countries such as Vietnam or Sri Lanka, Turkey has more expensive labor cost, but it also owned better quality on apparel manufacturing through quality control. In the future, the apparel and textile industry would continue to extend. More corporations were attracted to develop clothing business in Turkey due to its enormous potential. Istanbul gradually became the city of fashion and shopping center. The city attracted numerous international buying offices, trading houses, major retailers and department stores. Additionally, “T-shirts, singlets and other vests” was the most important export products. “Women's/girls' suits, dresses, skirts & shorts” also played a vital role. (2016) Although both them decreased from 2014 to 2015, they still owned huge effect on Turkey’s knitted or clothing industry. According to Turkey ministry of economy’s report of clothing, clothing and textiles were the largest and best-performing sectors of the Turkish economy. The apparel and textile industry accounted for approximately 7% of the country’s GDP. (2016) These two sectors constituted the main GDP contribution and the core of Turkish economy. They performed in four indicators including employment, manufacturing, investments and macroeconomic and had a 10.32% share in total export volume in 2015. (2016)

Turkey was one of the main participants in the world apparel industry. The country ranked 7th in world cotton production. In organic cotton production, Turkey ranked 3rd after India and China.The Turkish clothing industry was the 8th largest supplier around the world and the 3rd largest supplier to the EU.The US ranked twelve on the Turkeyâ&#x20AC;&#x2122;s clothing exports by countries. (Ministry of Economy) In other words,Turkey is not the main country of apparel export to the US. The country with a share of 3.99% in world knitted clothing exports ranked 5th among the exporting countries. It also ranked 9th among the worldwide woven clothing exporters with a share of 2.65%. (2016) The Turkish textile industry was listed in the worldâ&#x20AC;&#x2122;s top ten exporters according to World Trade Statistical Review 2016 by the WTO. Undoubtedly, Turkey had strong advantages on apparel and textile industry.

1) GELISIM TEKSTIL – About: It was established in 1995 in Istanbul. The company is producing and exporting every kind of circular knitwear products for women, men and children for well- known European chain stores and brands with the highest quality consciousness.

Abilities: Knitwear products for lady, men and children including dresses, t-shirt, sweatshirt, legging, blouse, trouser, skirt and sleeping suits

Additional Services Offered: Planning & Sourcing, Pattern & Sample Room, Cutting, Sewing, Ironing, Packing and Shipment, Embroidery, Print, Quality Control

Clients: H&M, Adidas, Puma, Nike, Tommy Hilfiger, Daidora, S. Oliver, Esprit, Marks&Spencer, Timberland, MS Mode, NEXT, Helly Hansen, Mexx

Capacity: 500.000 pieces/month. Address: Cumhuriyet Mah. Eski Hadımköy Yolu Volkan Sok. No:5 Beylikdüzü 34500 Büyüçekmece, İstanbul, Turkey Contact: + 90 212 886 60 40 Email: info@gelisimtekstil.com.tr Website: http://www.gelisimtekstil.com.tr/eng/index.html

2) PAMEKS GIYIM – About: It was established in 1986 in Istanbul. The company has been producing jersey garments for various international fashion brands with its high technology, R&D and innovative approach, as well as its warrant of high quality.

Abilities: Dresses, T-shirts, polo shirts, sweatshirts, tops, jersey jackets, jersey pants, skirts. Fabrics include jersey, rib, interlock, jacquard, French terry, pointelle, spacer, scuba, knit towel, punto interlock. Fibers include modal, cotton, viscose, wool, linen, cashmere, silk, acetate, polyamide, polyester, rayon, rayon viscosse, cupro, tencel, bamboo and a wide range of blended fabrics.

Additional Services Offered: Sampling, cutting & assortment, ironing, quality control, packaging, knitting, cutting & assembly, sewing

Clients: H&M, J.Lindeberg, Riani, Oska, Maerz, Hallhuber, Someday,Vilebrequin, Marina Rinaldi, Armani Collezioni, Emporio Armani, Max&Co,TOD'S, Expresso, Pauw, Promiss, Bimba y Lola Capacity: 130.000 pieces/month

Address: Evren Mah. Gülbahar Cad. No:17 34212 Bağcılar, İstanbul, Turkey Contact: +90 (212) 548 40 24 Email: info@pameks.com Website: http://www.pameks.com/en/

3) BETA KONFEKSIYON – About: It is the ready-made clothing producing and exporting function of their group which has been producing for exports since 1985. After producing in Izmir for 31 years, the company has an established export culture and a quality production concept with its experienced and qualified staff members.

Abilities: Ladies' dresses, T-shirts, sweatshirts, trousers made of knitted fabrics and tunics, and the like made of printed and plain-dyed knitted fabrics Additional Services Offered: Design, preproduction and sample sewing, quality control, cutting, sewing, packing and delivery, embroidery, piece-dyeing, piece-printing, pressing, bagging, Organic Fashion

Clients: H&M, Bonprix, Costes, OTTO, DPDB, The Sting, Gerry Weber, Anna Scholz, Miss Etam, Schwab,Via Appia Due, Blancheporte, Ulla Popken, Heine,Venus, Gina Laura, Men at Work, Elvira, Scapino, Bel&Bo

Capacity: 3.000.000 articles/month Address: Fatih Mah. Atatürk Cad. No:53 35410 Sarnıç, Izmir, Turkey Contact: +90 232-281 50 50 Email: info@betatextile.com.tr Website: http://www.betakonfeksiyon.com.tr/en/default.aspx

CULTURAL INSIGHT Most Turks were friendly and hospitable. When they met friends and family, they usually greeted each other with one or two kisses on the cheek. If we were not familiar with each other, we could shake hands firmly replacing kiss. When Turkish people met Elders, they would respect them by kissing their right hand then placing the forehead onto the hand. It was important to present our courtesy and respect to Turks because they preferred do business with people who they knew and respected. Spending time on building personal relationship through over extended lunches, dinners, and social outings would be significant before discussing business. Turks didnâ&#x20AC;&#x2122;t require as much personal space as many other cultures so it would be fine to stand closer while conversing. Do not back away because it could be considered unfriendly. Discussion might begin slowly, but it was necessary to be patient to do business with Turks. We could ask them about family without prying and they would welcome questions about children. Children would be a good topic of conversation. The Turks were proud of their country and they would like to answer questions about their culture and history. However, political history had to be avoided. Political issue was more sensitive in many countries.

Most Turkish men loved football (soccer) and it would also become a good topic during a conversation. If We knew some football topics and asked them questions about their support team, they would give us positive responses. It was important to maintain eye contact while speaking with Turks because they believed that it was an evidence of sincerity. Additionally, there were some etiquette about business meeting. Appointments were necessary and should be made before one or two weeks by telephone. Many Turks would arrange vacation during July or August, so it wouldnâ&#x20AC;&#x2122;t be a suitable time to schedule appointments and location should avoid scheduling meeting in Ramadan. Punctuality was necessary so we should always arrive the meeting on time. We should prepare all printed materials with English and Turkish version and presentation should be presented visually through visual tools such as maps, chart and graphs so they could easily understand the main points. On the Business dress, male and female had different dress etiquette. First, business dress preferred conservative. Male was expected to wear a suit and tie. Female also needed to wear professional outfits. In the summer, the weather was very hot and humid, especially in the cities of Istanbul, Izmir and Anakara, male could be accepted wearing a shirt with trousers and no tie. Outside the big cities, especially in the East of Turkey, both female and male should wear more conservative clothing. Female should avoid exposing their legs and arms and ensuring clothes were not tight-fitting and male should not wear shorts. It is necessary to understand cultural differences between Turkey and the US to present our polite and respect to make the business process move smoothly. Turkey and the US have enormous cultural differences because of different religion. Most Turkish people are Muslim and most American are Christianity. Therefore, we should be more careful if we develop our business in Turkey, especially the womenâ&#x20AC;&#x2122;s clothes. We should wear more formal and conservative clothes and prevent conversation topic about political issue. Most important of all, we should respect their religion, so we need to understand what kind of taboos that Islam has and avoids them. For example, pork is forbidden to Muslims as are foods containing pork products. The consumption of alcohol is strictly taboo, too. When we meet Turkish people in a restaurant, we should avoid food such as pork and alcohol.

TRADE AGREEMENTS

Turkey doesn’t have free trade agreement with the United States. However, Trade and Investment Framework Agreements (TIFAs) provided a frameworks and principles for the countries between the United States and the other members to the TIFA on trade and investment issues. The United States and TIFA partners discussed a wide range of issues related to trade and investment. The purpose of TIFA was to improve possible cooperation and increase opportunities for trade and investment such as market access issues, labor, the environment, protection and enforcement of intellectual property rights and capacity building in appropriate situation. The other trade agreement between the United States and Turkey was Turkey Framework for Strategic and Economic Commercial Cooperation (FSECC). The FSECC provided an annual tribune for both countries’ senior-level officials to discuss commercial and economic issues. (2010) Besides, it gave different suggestions and strategies in other areas such as energy, trade and investment promotion, regulatory cooperation, scientific and agricultural collaboration, and intellectual property rights. These two trade agreements can improve both countries to develop international trade and relationship of economic cooperation. Furthermore, they also may bring positive effects to the apparel and textile industry. Therefore, if we prepare our business in Turkey, we can expect TIFA and FSECC improve the general economic development between Turkey and the US. Although they can’t bring many benefits like free trade agreement, they still have influence on enhancing both countries’ economic cooperation. They may help us to operate apparel business in Turkey.

TRANSPORTATION 1.

Orient Overseas Container Line (OOCL):

It is a Hong Kong-based container shipping and logistics service company founded in 1969.The company is a member of the Ocean Alliance with approximately 350 vessels providing operational efficiency and competitive service networks. (2017) The transit time of OOCL needs around 22 to 28 days. Website: http://www.oocl.com/eng/Pages/default.aspx

2. Hapag-Lloyd: It is a leading global liner shipping company founded in Hamburg in Germany. The company has 166 modern ships and 9,300 motivated staff at more than 360 locations in 121 countries. (2017) The transit time of Hapag-Lloyd needs around 28 to 33 days. Website: https://www.hapag-lloyd.com/en/home.html On the transportation, I considered three shipping companies: Mediterranean Shipping Company (MSC), Hapag-Lloyd, and Orient Overseas Container Line (OOCL). These three shipping companies all provided the shipping service from Istanbul port to Savannah port.

Mediterranean Shipping Company (MSC):

It is a world leader in global container shipping. It operates a network over 480 offices in 150 countries and its global sailing schedules covered 200 routes, calling at 315 ports, allowing customers to deliver their cargo almost around the world. (2017) The transit time of MSC from Istanbul to Savannah is around 26 days and the price of freight around $1,500 including insurance. Website: https://www.msc.com/usa

PRODUCT CLASSIFICATION

LEAD TIME OF PRODUCTION Earthquake is the severe natural disaster in Turkey due to its geographical location on the Alpide belt from Mediterranean Sea to Himalayan. According to Disaster & Risk Profile on PreventionWeb, earthquake accounted for 96.9% of Mortality and 94% of combined economic losses based on Nationally Reported Losses 1990-2014. The second natural disaster was flood. (2014) These disasters may influence lead-time of production if they caused very severe result such as high deaths, house destroyed, house damaged, injured people, and displaced people. The production process will be affected and merchandise can’t be produced on time. In addition, most citizen in Turkey was Muslim because Islam was the largest religion in Turkey. There were some religion holidays such Ramadan Feast and Sacrifice Feast. Ramadan Feast would continue three days and Sacrifice Feast would be four days. Both holidays were national holidays so they might affect lead-time of production because the US didn’t have these religion holidays. On the other hand, the US has Christmas holiday, but Turkey doesn’t have. The different national holidays may influence communication and production process due to different work day.

RISKS AND BENIFITS According to the researches, Turkey has some potential risks for us to develop a new business such as political uncertainty and social security because no one wants to invest business in an unsafe place. The geographical location and surrounding countries makes Turkey under an unstable environment. Terrorist organization still creates horrible activities and destroyed the country’s safety. These problems may affect the country’s economy stability. For us, an ideal country should be safe and stable, so we don’t have to worry about terrorist attack or civil war that will influence our business. In addition, crimes against women will increase the difficulty for women working in Turkey. The country can’t promise women a safe work environment. For our brand, it is harder to operate a company that supports women right because women are treated as second-class citizens in Turkey.

However, the Turkish textile industry was listed in the world’s top ten exporters based on the report of WTO

and the second largest supplier to the EU. (Ministry of Economy) It has strong competitiveness comparing to other countries because the government and several Turkish clothing companies invested positively to the apparel industry to provide better manufacturing environment and high quality control. Also, Turkey has one of the youngest population in Europe with the average age of 30.1 years. In other words, Turkey has ability to provide enough labors to fulfill our employee’s requirement. In the long-term,Turkey is still attractive candidate to develop our business because textile and clothing are the core of Turkish economy. It owns many garment suppliers that we can choose to produce our dresses. However, we still need to consider the country’s risks and estimate Turkey’s value to our business.

CONCLUSION

In conclusion,Turkey is an enormous potential market in the global economy. Although it also has many risks on political, economic and social side, the government put its efforts to improve the countryâ&#x20AC;&#x2122;s environment through new policies or trade agreement with other countries. It positively becomes memberships of many international organizations to enhance its international effect in the world and created more opportunities of trade and investment. If the country can continue to improve its country security by preventing ISIS activities, decreasing violence against women issues, improving labor laws and enhancing tertiary education level, it can solve more current countryâ&#x20AC;&#x2122;s political, economic and social problems and provide a safer and more adequate work environment for labors in Turkey and other countriesâ&#x20AC;&#x2122; investors. Moreover, the country will become a better supplier of textile and apparel industry.

SRI LANKA S

• One of the leading countries in green consciousness • Promising future in technology and innovation • Low cost in manufacturing compared to some countries • Good customer profile

• • • • •

No free trade agreement with the U.S Past civil war High amout of debt Monsoon leading to delay in production Far from US leading to longer lead times and increased cost of freight.

• The new government is promising to get political and economic stability • Become the number one country to have highest level of green and sustainable manufacturing.

• Declining labor force due to migration • Competition from other countries where cheaper labor is available.

VIETNAM S

• • • •

Political stability Strong foreign investment Young society More access to education

• TPP • Trade agreements with South Korea and EU • Government support/focus on modernization

• Local government participation • Freedom of expression • High corruption levels

• • • •

Territorial dispute with China Pollution levels Civil unrest Outdated communist policies

PERU S

• • • • • •

Democratic government Proximity to United States Free trade agreement with United States Friendly business climate High quality garment manufacturing High labor standards

• • • •

Growing manufacturing sector Strong USD against Peruvian Sol Fastest growing country in Latin America Rapid industrialization

• Relatively new government • Inefficiencies and corruption within local governments • Fairly specialized textile industry

• History of extremist movements • Rising drug cartel activity across Colombian border and through ports • Pollution and resource overuse • Exposure to El Niño, earthquakes, and tsunamis

TURKEY S

• Member of EU and several international organizations • Clothing and textiles are the largest and best-performing sectors • Textile industry was listed in the world’s top ten exporters

• No free trade agreement with the U.S • Different national holidays due to Islam religion • Violence against women • Weak labor laws • Low tertiary education rate • Relatively high labor cost

• GDP continues growing • One of youngest population in Europe • The government continues improving country’s economy and global position • Strong in ICT (Information and • Communication Technology)

• Political uncertainty such as military coup and terrorist attack • Earthquake • Strained relationship with Middle East • Dictatorship and Islamic conservatism of • President Recep Tayyip

COUNTRY RANKINGS

According to the country ranking, Peru has the highest score and the most ideal country compared to other countries because of the free trade agreement with the U.S. In addition, Peru is the closest country. Comparing to other three countries, it has the shortest distance and less time difference between the U.S. and Peru.The textile industry in the Peru enjoys wide availability of high quality raw materials, most of which are grown locally. However, Peru has a relatively high labor cost due to high labor standards and a quickly growing economy. The garment worker in Vietnam and Sri Lanka have cheaper salaries on average, which results in lower manufacturing costs. Although the locations of Vietnam and Sri Lanka are farther than Peru and Turkey, both countries have higher social and political stability. Overall, Peru is the most beneficial choice of four countries. Vietnam and Sri Lanka have a marginally lower rank. Turkey has the lowest score of the four, relatively.

SUPPLIER SELECTION After extensively researching potential sourcing countries, we needed to look into manufacturers. Within each country, we identified three potential manufacturers and ranked them based on a wide variety of criteria, including lead time, adherence to sourcing guidelines, services offered, and capacity; ultimately identifying the best choice of the three. Within Peru, the frontrunner was Industrias Nettalco S.A., which was chosen due to its capacity, vertical integration, and high environmental standards, while still being a small enough operation that a startup company such as Artemis could be taken seriously. In Vietnam, the top choice was Fashion Garments 2 Co. Ltd, which is a subsidiary of Hirdaramani in Sri Lanka, has high standards for environmental impact, womenâ&#x20AC;&#x2122;s empowerment, and labor rights, in addition to maintaining a high capacity and strong focus on integrating with corporate partners. In Turkey, the best option was Beta Konfeksiyon, due to its significantly higher capacity than comparable manufacturers, short lead time, and employee improvement initiatives. For Sri Lanka, the obvious choice was Hirdaramani, which is LEED Platinum certified, among other environmental initiatives, has multiple facilities that serve some of the biggest names in apparel, and extensive services.

TEXTIL DEL VALLE S.A. S

• Manufacturing high value knitted garments • Fulfillment of the environmental management • Vertically integrated strategy • Customers include Calvin Klein,Victoria's Secret, Burberry, Lacoste…etc •

• Limited capacity of 650,000 garments monthly

• Promote workers and foster an environmental culture • Create value with social responsibility

• Natural Disasters such as earthquakes and tsunamis in the country

FASHION GARMENTS 2 CO. LTD S

• • • •

Large capacity (3 million/month) A subsidiary of the Hirdaramani Group Wide range of product categories Customers include Tommy Hilfigher, PINK, Adidas, Levis…etc

• Continuous improvement on the innovative product and process solutions • Social responsibility on communities and sustainability

• Long lead time (60-80 days)

• Natural disaster (floods, typhoons, landslides, earthquakes) and potential threat of civil unrest

BETA KONFEKSIYON S

• Large capacity (3 million/month) • Short lead time (4-5 weeks) • Organic fashion with 100% organic and natural products • Customers include H&M, Bonprix, Costes…etc

• Improvement on the environment and human health • Continuous development on organic textile and production processes

• Lack of social responsibility present on the physical behavior

• Religious difference may influence the lead-time due to Islam national holidays • Natural disaster (earthquake) and political uncertainty in the country

HIRDARAMANI S

• • • • •

National Award for quality Large capacity (5 million/month) 10 manufacturing units in Sri Lanka Zero carbon, Green factory Customers include M&S, Levis, Calvin Lein, Uniqlo, Nike, Patagonia, Eddie Bauer, Adidas, J Crew, Hugo Boss, Tommy Hilfiger, Lily Pulitzer, Reebok, Michael Kors

• Production plants in Vietnam, Bangladesh and Ethiopia • Corporate responsibility and sustainability • Focus on women’s rights through training & awareness programs

• Big scale company – higher costs and higher risk • Less importance placed on smaller companies

• Potential threat of civil unrest such as possibility of civil war

PLACEMENT STRATEGY As a company, Artemisâ&#x20AC;&#x2122; sourcing strategy is rooted in environmental and humanitarian ethics. When determining a sourcing location, we closely examined and evaluated four different countries and twelve different manufacturers. Keeping in mind our values as a company, we had to take a number of factors into consideration, including cost, profit margin, environmental impact, human rights standards, distance, location, and risk. After multiple cost/benefit analyses and examinations of different sourcing scenarios, we were able to settle on a strategy that is beneficial for all parties involved.

While cost and profit margins are critical to the survival of any business, we felt that paying slightly more to

ensure the quality and impact of our dresses is second to none was more important than trying to shave down costs as much as possible. We chose to source about 40% of our dresses from Industrias Nettalco in Peru, which offers high quality and labor standards, as well as short lead times being so close to the United States. The other 60% will be split between Hirdaramani in Sri Lanka and one of its subsidiaries, Fashion Garments 2 Co., in Vietnam. While slightly farther away and more expensive, Hirdaramani sets the standard for environmental and employee responsibility in manufacturing, and we felt that producing a garment that our customers can feel good about wearing is worth a little extra time and money. Despite investing in environmentalism and human rights, we are still able to maintain an 87.71% average margin on our dresses, proving that profit and ethics can coexist successfully.

WAREHOUSING, LOGISTICS AND DISTRIBUTION After Artemis dresses are manufactured in Peru, Sri Lanka, and Vietnam, they must be quickly and efficiently transported into the United States in order to easily fulfill online orders. Artemis has partnered with Maersk in Peru, Colombo Express Inc. in Sri Lanka, and ZIM in Vietnam for its transportation needs.These companies were decided based on their stability, consistency and competitive pricing. Also, all four companies will be able to provide entry into the United States through the Savannah, Georgia port, close to the Artemis corporate headquarters.

In order to fulfill online orders from Savannah for customers nationwide, Artemis analyzed the capabilities of various logistics companies.When considering supply chain providers,Artemis considered criteria including inventory management capabilities, pick and pack, value added services, existing customers and location. Supply Chain Solutions Providers

Artemis had decided to use a third party supply chain provider in order to ensure efficiency and handle our needs for warehousing, distribution. Being that we are a new company, it was vital to pick a reliable company that was strategically located in the United States. Furthermore, being that we are 100% online, we needed a provider with expertise and value-added services for e-commerce. When researching multiple logistics companies, we looked for providers that offered specific services for the fashion and luxury market to see who could best service us.

Our overall goal was to fully asses who would be able to increase sales, reduce inventory, save time, reduce costs, improve efficiency and brand security. After much research, we narrowed our search down to three key providers that would best fit Artemis.

GEODIS GEODIS is a supply chain operator ranking among the top companies in its field in Europe and the World. GEODIS, which is part of SNCF Logistics, is the number one Transport and Logistics operator in France and ranked number four in Europe. The international reach includes a direct presence in 67 countries and a global network spanning over 120 countries. With its five Lines of Business (supply chain optimization, freight forwarding, contract logistics, distribution & express and Road Transport), GEODIS manages its customers supply chain by providing end-to-end solutions enabled by our people, our infrastructure, processes and systems.

GEODIS has over 160 facilities across North America. The United States sector is headquartered in Brentwood, Tennessee. With 26 facilities has a presence all throughout the country, including Los Angeles, Miami, Kansa City, New York and Laredo, Texas, and over 36 millions square feet of warehousing space. A single, central location in their network can reach 70% of the U.S. population in 2 days via ground. With three locations, they can reach 99% of the U.S. population in 2 days via ground.

For fashion and lifestyle, GEODIS offers an array of value-added services that would meet the needs of Artemis, including processing of garment-on-hanger flows, personalized orders and packaging, store opening logistics, management of customs operations, e-business and multichannel logistics, returns logistics, quality control and carbon footprint reduction.

DB SCHENKER USA With over 140 years of experiences, German company DB Schenker is one of the global industry leaders in logistics. They support industry and trade in the global exchange of goods through land transport, worldwide air and ocean freight, contract logistics and supply chain management.With a presence in over 130 countries and over 100,000 employees, DB Schenker works in a worldwide network, but operates locally through their 2,000 locations. Headquartered in Miami, the company has a variety of locations in the midwest, east coast and south of the United States and over 23.7 million square feet of warehousing space. DB Schenker places a huge focus on the fashion and luxury supply chain solutions. In addition to warehousing and distribution, the company offers many value-added services like pick and pack, re-packing, kitting, QC & inspection, needle inspection, specialized labeling, bar code scanning, ironing, replenishment, customs management,fast moving cross docking, high-end security capabilities, store deliveries and reverse logistic.

RYDER Ryder is a FORTUNE 500® commercial fleet management, dedicated transportation, and supply chain solutions company. They have been named among FORTUNE’s World’s Most Admired Companies, and has been recognized for its industry-leading practices in third-party logistics, environmentally-friendly fleet and supply chain solutions, and world-class safety and security programs. As a true end-to-end supply chain provider, they provider the visibility, flexibility, and quick response necessary to avoid disruptions, improve efficiency, and raise the bar on customer service. Ryder was founded in 1933 and is headquartered in Miami.The company has numerous facilities across the United States, including Fullerton, California, Milwaukee, Wisconsin, Lockburne, Ohio, Hebron, Kentucky, Piscataway Township, New Jersey, and 43.7 million square feet of warehouse space. In addition to the needs of Artemis, Ryder offers value-added services like kitting, bundling, customization and packing.

FINAL SUPPLY CHAIN PROVIDER SELECTION Due to not receiving actual quotes from the three providers, our analysis was based on quality rather than cost. After ranking and analyzing the top three logistics providers, Artemis has decided to utilize GEODIS for our warehousing and distribution needs. As a subsidiary of SNCF, France’s national state-owned railway company, and with over 30 years of experiences, we are confident that we can rely on their fashion supply chain solutions.They offer a full range of solutions for transport, logistics platforms and material flow management, but also value-added services that would benefit us in the future, like store opening logistics and garment on hanger flows. In addition, location was a key deciding factor for we wanted strategic warehouses and distribution centers that would not only allow us to quickly fulfill orders in general, but reach our target customers on both coasts of United States. With facilities in nearly every region of the country, we are assured that GEODIS can service our needs best. The distribution centers utilized by Artemis are: • Reno, Nevada • Hendersonville, Tennessee

These locations were chosen due to their accessibility. Since we are completely online, we need strategic locations that allow us to distribute our dresses quickly and efficiently anywhere at anytime.

FINAL STRATEGY Unlike many apparel companies which base their sourcing only on finding the highest margins, Artemis’ strategy involves a balance of additional factors. While cost is taken into consideration, as the company can’t continue to do good without maintaining profitability, modern companies have an obligation to consider more than just costs.

Environmental impact is a major factor in Artemis’ strategy, and is considered at all points in the product development and supply chain process. From creating simple designs that require few inputs, to choosing environmentally-friendly and renewable fabrics, our products are designed with the planet in mind. Furthermore, in choosing sourcing partners, we partner with manufacturers who recognize both the environmental necessity and rising consumer demand to implement green technology and work toward reducing impact as much as possible. Even Artemis’ packaging, a simple heat stamped tag and cardboard sleeve, which includes no plastic or harmful non-degradable waste products, was developed to minimize impact and increase the sustainability of the brand.

Human rights plays a big role in Artemisâ&#x20AC;&#x2122; sourcing strategy, especially in the wake of growing supply chain transparency. Artemis seeks not only to have its products made, but to work with manufacturers who are committed to their communities and want to better the lives of employees while paying a living wage. As a company, we believe that profit for us doesnâ&#x20AC;&#x2122;t have to mean taking advantage of manufacturing employees, and that everyone involved can benefit from our business.

Last, but not least, Artemis keeps risk management in mind when it comes to sourcing strategy. Many key manufacturing areas experience a certain level of instability, be it government, social, or environmental, to name a few. While a certain level of risk exposure is inevitable when sourcing internationally, Artemis not only carefully chooses relatively stable areas and suppliers, but also keeps a close eye on all sourcing locations, so as to minimize risk for shareholders and ensure the longevity of the brand.

When it comes to sourcing, Artemis is willing to sacrifice a small amount of profit margin in order to ensure sustainable and ethical business practices. With a complicated balance, we are able to maintain profitability while still ensuring that environmental and human rights standards are being met in addition to mitigating as much risk as possible. By staying true to our values and encouraging other companies to do so as well, Artemis is attempting not only to sell dresses, but to make the world a better place for everyone.

CONCLUSION Artemis is a company that believes doing good and making money are not mutually exclusive. With a little work, it is possible to develop a business model that benefits all parties involved, the environment, and the world. This ideology is the foundation upon which Artemis has been built, as both an apparel company, and a force for good. In the age of fast fashion and disposable clothing, which undoubtedly harm the planet and workers alike, we feel good about our business practices, as we truly believe that we are helping to reduce environmental impact and raise working standards for garment workers, while providing a product that our customer doesnâ&#x20AC;&#x2122;t need to feel guilty about wearing. Artemis is not only a fashionable, comfortable option for women, but proof that the garment business can be good for the planet.

APPENDIX TECH PACKS

COSTINGS

Style #

11004

Style Name

Bell Sleeve Dress

Description

Modal Bell Sleeve Dress

FABRICS

Mill

Style #

Description

$/Yard

Yield

Total

Modal

Pacific Coast Knitting

J025

6-6.5 oz 100% Micromodal

$3.30

1.75

$5.78

TOTAL FABRIC COST

$5.78

COMPONENTS

Vendor

Style #

$/Unit

Quantity

Total

Heat Stamp Tag

**In-house

HS-11001

$0.031

Thread

A&E

T-40

$0.00126

$0.0756

Waste Factor

1% Inputs

$0.06

TOTAL COMPONENT COST

$0.165

PACKAGING

Vendor

Style #

$/Unit

Quantity

Total

Cardboard Sleeve

Salazar Packaging

AR-0001

$0.135

TOTAL PACKAGING COST

$0.135

PACKING

Vendor

Style #

$/Unit

Quantity

Total

Cartons

Uline

S-4201

$2.36

$0.07375

Tape

Uline

S-4750

$0.01

Labels

Uline

S-5492

$0.06

TOTAL PACKING COST

LABOR

$0.1438

Cost/Min

# of Minutes

$/Unit

Quantity

Total

Patternmaking Grading

1%Sew SewCost cost 1%

$0.0162

$0.0162 $0.0162

Marking

1% Sew Cost

$0.0162

Cutting

10% Sew Cost

$0.162

Sewing

0.18

$1.62

$0.50

Admin TOTAL LABOR COST

$2.3306

OTHER

Company

Cost

# of Units

Total

Freight

MSC

$1,500

100,000

$0.02

Insurance

MSC

included on the freight

Total Cost Product + Insurance + Freight Duty Broker

$8.56 16%

$0.16 $1,000

$0.16 100,000

$0.01

TOTAL OTHER COST

$0.19

GRAND TOTAL

$8.73

COUNTRY RESEARCH EXHIBITS AND ROUTES

TURKEY

Figure 1

Figure 2

Figure 3

Figure 4

SRI LANKA

VIETNAM

Figure 1.Vietnam Trade Agreements

Figure 3. Future Aspirations

Figure 2. Analysis of the Trans-Pacific Partnership Proposal

Figure 4. Global Apparel Imports

Figure 5. Global Apparel Imports: Jan 2017

PERU

Exhibit 1: Peru Population Statistics

Exhibit 2: Peru Manufacturing Statistics

Exhibit 3: Peru GDP

ROUTES VIETNAM

SRI LANKA

TURKEY

PERU

WORK CITED Vietnam -

“2016 Top Markets Report Technical Textiles Country Case Study.” Top Markets Report(n.d.): n. pag. International Trade Administration. U.S. Department of Commerce. Web. “Bodynits International.” Bodynits International. Web. 26 Apr. 2017. http://www.bodynits.com/ “Business Etiquette.” VietTrade. Vietnam Trade Promotion Agency, n.d. 2017. Web. http://www.vietrade.gov.vn/en/index.php?option=com_content&view=article&id=792&Itemid=192 Davis, Brett.“Death of TPP Trade Deal a Blow forVietnam's Promising Economy.” Forbes. Forbes Magazine, 23 Nov. 2016.Web. 25 Apr. 2017. https://www.forbes.com/sites/davisbrett/2016/11/22/death-of-tpp-trade-deal-a-blow-for-vietnams-promising-economy/#3716aedb4533 “Disaster Preparedness and Resilience: Vietnam.” Give2Asia. N.p., n.d. Web. 25 Apr. 2017. http://www.give2asia.org/disaster-preparedness-and-resilience-myanmar-1-1/ “Doing Business in Vietnam.” Ho Chi Minh City: De Gruyter, 2016. PricewaterhouseCoopers. PWC Vietnam, Jan. 2016. Web. https:// www.pwc.com/vn/en/publications/2016/pwc-vietnam-doing-business-guide-2016.pdf “Doing Business in Vietnam – Business Tips & Regulations.” ANZ Business. Australia and New Zealand Banking Group Limited, n.d.Web. 25 Apr. 2017. http://www.anzbusiness.com/countries/vietnam.html#.WP9oHNLyvIU “Economic Research and Regional Cooperation Department (ERCD).” Asia Regional Integration Center. Viet Nam-Customs Union of Russia, Belarus, and Kazakhstan Free Trade Agreement. Asian Development Bank, n.d. Web. 25 Apr. 2017. https://aric.adb.org/fta/vietnam-customs-union-of-russia-belarus-and-kazakhstan-free-trade-agreement Granville, Kevin. “What is TPP? Behind the Trade Deal That Died.” The New York Times, 20 Aug. 2016. Web. 25 Apr. 2017. https://www. nytimes.com/interactive/2016/business/tpp-explained-what-is-trans-pacific-partnership.html?_r=0 “Important Declarations, Agreements, Laws and Regulations.” Asian and Pacific Technology Transfer Handbook. Washington, D.C.: Intl Business Publications USA, 2007. 105. Print. “Langham Garment Co, Ltd.” Datamyne, 14 Apr. 2017. Web. 26 Apr. 2017. http://www.datamyne.com/supplier/1694162/langham-garment-co-ltd

“Langham Garment Co, Ltd.” Panjiva. Web. 25 Apr. 2017. https://panjiva.com/Langham-Garment-Co-Ltd/4060743#summary-tab Ly,Thiên. “Pressure Expected on Dollar-đồng Exchange Rate.” Vietnamnews.vn.Vietnam News, 17 Apr. 2017.Web. 25 Apr. 2017. http:// vietnamnews.vn/economy/374770/pressure-expected-on-dollar-dong-exchange-rate.html#l02fUm1Hh8VARjMr.97 “Socialist Republic of Vietnam.” Culture and Society | Embassy of the Socialist Republic of Vietnam in the United States. Web. 25 Apr. 2017. http://vietnamembassy-usa.org/vietnam/culture “The World Factbook:VIETNAM.” Central Intelligence Agency, 12 Jan. 2017.Web. 25 Apr. 2017. https://www.cia.gov/library/publications/ the-world-factbook/geos/vm.html Thu,Tran. “Vietnam-Korea FTA Takes Effect.” The Saigon Times, 23 Dec. 2015.Web. 25 Apr. 2017. http://english.thesaigontimes.vn/44812/ Vietnam-Korea-FTA-takes-effect.html “Understanding the Concept of Saving Face in Vietnamese Culture.” The Vietnam Guide. TVG, 06 Aug. 2012. Web. 25 Apr. 2017. http:// thevietnamguide.com/tvg/understanding-the-concept-of-saving-face-in-vietnam/ “Vietnam.” Country Fact Sheets:Vietnam, 25 Aug. 2016. 1. 2017. http://web.b.ebscohost.com/bsi/detail/detail?vid=0&sid=844c984e-44a2 -4c61-837a-347a6f73e038%40sessionmgr101&bdata=JnNpdGU9YnNpLWxpdmU%3d#AN=118291515&db=buh “Vietnam.” Vietnam Country Profile, Aug. 2016. 1-68. 2017. http://web.b.ebscohost.com/bsi/detail/detail?vid=0&sid=cfd55956-e3b7-441 3-9eb3-ecd5ad45f52a%40sessionmgr103&bdata=JnNpdGU9YnNpLWxpdmU%3d#AN=119026138&db=buh “Vietnam - Business Customs Vietnam - Business Customs.” Vietnam - Business Customs. The International Trade Administration, n.d. Web. 25 Apr. 2017. https://www.export.gov/article?id=Vietnam-Business-Customs “Vietnam-Chile Free Trade Agreement (VCFTA).” Vietnam-Chile Free Trade Agreement (VCFTA) | WTO and International Trade Policies. Vietnam Chamber of Commerce And Industry, n.d. Web. 25 Apr. 2017. http://wtocenter.vn/other-agreement/vietnam-chile-freetrade-agreement-vcfta “Vietnam - Location, Size, and Extent.” Encyclopedia of the Nations. Advameg, Inc., n.d. Web. 25 Apr. 2017. http://www.nationsencyclopedia.com/Asia-and-Oceania/Vietnam-LOCATION-SIZE-AND-EXTENT.html “WPS - Map of Ports in Vietnam.” World Port Source. N.p., n.d. Web. 26 Apr. 2017. http://www.worldportsource.com/ports/VNM.php

Peru –

“At A Glance: Peru Statistics.” UNICEF. N.p., 2013. Web. 11 Apr. 2017. https://www.unicef.org/infobycountry/peru_statistics.html “Business Culture and Etiquette in Lima, Peru.” Starwood Latin America. N.p., 2017. Web. 23 Apr. 2017. http://offers.starwoodlatinamerica.com/destinations/peru/business-travel/business-culture-etiquette-lima-peru/#jump “Doing Business in Peru.” UK Department for International Trade. N.p., 2014. Web. 23 Apr. 2017. https://www.gov.uk/government/publications/exporting-to-peru/exporting-to-peru Donaldson, Tara. “Sourcing Spotlight: Manufacturing in Peru.” Sourcing Journal. N.p., 2014. Web. 22 Apr. 2017. https://sourcingjournalonline.com/sourcing-spotlight-manufacturing-peru-td/ “IDEA Country Dashboard: Peru.” Idea.usaid.gov. N.p., 2017. Web. 21 Apr. 2017. https://idea.usaid.gov/cd/peru/economy “Industrias Nettalco S.A.” Nettalco. N.p., 2017. Web. 15 Apr. 2017. http://www.nettalco.com.pe/index_esp.html “Industria Textil Del Pacifico.” Intexpac. N.p., 2017. Web. 14 Apr. 2017. http://www.intexpac.com/ “MSC: Global Container Shipping Company.” Msc.com. N.p., 2017. Web. 22 Apr. 2017. https://www.msc.com/ “Peru.” World Travel Guide. N.p., 2015. Web. 22 Apr. 2017. https://www.worldtravelguide.net/guides/south-america/peru/ “Peru - Business Customs.” Export.gov. N.p., 2016. Web. 24 Apr. 2017. https://www.export.gov/article?id=Peru-Business-Customs “Peru - Market Challenges.” Export.gov. N.p., 2016. Web. 15 Apr. 2017. https://www.export.gov/article?id=Peru-Market-Challenges “Peru - Market Entry Strategy.” Export.gov. N.p., 2016. Web. 22 Apr. 2017. https://www.export.gov/article?id=Peru-Market-Entry-Strategy “Peru Overview.” The World Bank. N.p., 2017. Web. 24 Apr. 2017. http://www.worldbank.org/en/country/peru/overview “Peru - Political Environment.” Export.gov. N.p., 2016. Web. 18 Apr. 2017. https://www.export.gov/article?id=Peru-Political-Environment “Peru - US Trade Representative.” Ustr.gov. N.p., 2017. Web. 22 Apr. 2017. https://ustr.gov/countries-regions/americas/peru “Search for A Route.” Maersk Line. N.p., 2017. Web. 22 Apr. 2017. https://my.maerskline.com/schedules “Textil Del Valle.” Textil Del Valle S.A. N.p., 2017. Web. 14 Apr. 2017. http://www.textildelvalle.pe/

“The World Factbook — Peru.” Central Intelligence Agency. N.p., 2017. Web. 10 Apr. 2017. https://www.cia.gov/library/publications/ the-world-factbook/geos/pe.html “U.S. Relations with Peru.” U.S. Department of State. N.p., 2017. Web. 24 Apr. 2017. https://www.state.gov/r/pa/ei/bgn/35762.htm Valcarcel, Jorge. “Seven Tips for Doing Business in Peru.” Peru This Week. N.p., 2012. Web. 24 Apr. 2017. http://www.peruthisweek.com/ news-seven-tips-for-doing-business-in-peru-12819 Woody, Christopher. “In the World's Second Biggest Cocaine Producer, Narco Traffickers Are Expanding Their Influence.” Business Insider. N.p., 29 Nov. 2016. Web. 02 May 2017. http://www.businessinsider.com/r-drug-smuggling-at-ports-in-peru-rises-as-dockworkers-lured-government-2016-11

Sri Lanka -

Abeyagoonasekera, Asanga. “Sri Lanka: Stability in 2015.” IPCS. Web. 25 Apr. 2017. http://www.ipcs.org/article/south-asia/sri-lanka-stability-in-2015-4793.html “Doing Business in Sri Lanka.” Web. 25 Apr. 2017. http://www.expatknowhow.com/Documents/doing%20business%20in%20sri%20 lanka%20.pdf “Home.” Hirdaramani. Web. 25 Apr. 2017. http://www.hirdaramani.com/ “Home.” The World Bank. Web. 25 Apr. 2017. http://www.doingbusiness.org/ “Home.” Timex. Web. 25 Apr. 2017. https://www.timexsl.com/ “Home.” Hela Clothing. Web. 25 Apr. 2017. http://www.helaclothing.com/ “Home.” EAM Maliban Textiles (pvt) Ltd. Web. 25 Apr. 2017. http://www.maliban.com/ “Home.” Brandix. Web. 25 Apr. 2017. http://www.brandix.com/index.html “Home.” Department of Commerce. Web. 25 Apr. 2017. http://www.doc.gov.lk/web/index.php “Internet Usage Statistics in Sri Lanka – Updated for 2017.” Colombo Digital Marketers. Web. 25 Apr. 2017. http://www.digitalmarketer. lk/internet-usage-statistics-in-sri-lanka-2016-updated.html “IMF Survey: Sri Lanka to Reboot Economic Policies.” International Monetary Fund. Web. 25 Apr. 2017. http://www.imf.org/en/News/ Articles/2015/09/28/04/53/socar061416a

“Maithripala Sirisena’s 100 Day Work Programme; Detailed Diary Description.” Colombo Telegraph. Web. 25 Apr. 2017. https://www. colombotelegraph.com/index.php/maithripala-sirisenas-100-day-work-programme-detailed-diary-description/ “Progress of Government's 100-day Program After Two Years is at 71 Percent.” ColomboPage. Web. 25 Apr. 2017. http://www.colombopage.com/archive_17A/Jan09_1483972173CH.php Russell, Michelle. “Sri Lanka’s MAS to Open First US Manufacturing Facility.” just-style. Web. 25 Apr. 2017. http://www.just-style.com/ news/sri-lankas-mas-to-open-first-us-manufacturing-facility_id130414.aspx “Sri Lanka Export Development Board.” Sri Lanka Business.com. Web. 25 Apr. 2017. http://www.srilankabusiness.com “Sri Lanka: Economy.” Global Edge. Web. 25 Apr. 2017. https://globaledge.msu.edu/countries/sri-lanka/economy “Sri Lanka.” The World Bank. Web. 25 Apr. 2017. http://www.worldbank.org/en/country/srilanka/overview “Sri Lanka - Trade Agreements.” Export gov. Web. 25 Apr. 2017. https://www.export.gov/article?id=Sri-Lanka-Trade-Agreements “Sri Lanka Moves to Fast Track Economic Reform.” Oxford Business Group. Web. 25 Apr. 2017. http://www.oxfordbusinessgroup.com/ news/sri-lanka-moves-fast-track-economic-reform Shaffer, Leslie. “Why Sri Lanka’s Economic Outlook is Looking Less Rosy.” CNBC. 2 May. 2016. Web. 25 Apr. 2017. http://www.cnbc. com/2016/05/02/why-sri-lankas-economic-outlook-is-looking-less-rosy.html “Secrets for The Internet Penetration in Sri Lanka 2016 Revealed.” Extreme Seo.Web. 25 Apr. 2017. https://www.extreme-seo.net/internet-penetration-in-sri-lanka-2016/research/ “The World Factbook – Sri Lanka.” Central Intelligence Agency. Web. 25 Apr. 2017. https://www.cia.gov/library/publications/the-worldfactbook/geos/ce.html “Trade Relations Between Sri Lanka and The U.S.” Embassy of Sri Lanka. Web. 25 Apr. 2017. http://slembassyusa.org/trade/trade-relations-between-sri-lanka-and-the-us/ “Why Sri Lanka?” Business of Sri Lanka. Web. 25 Apr. 2017. http://www.investsrilanka.com/

Turkey –

“A Look at Turkish Language, Culture, Customs and Etiquette.” Commisceo Global. Web. http://www.commisceo-global.com/country-guides/turkey-guide “About Unlu Tekstil” Unlu Tekstil. 2017. Web. http://unlutekstil.com.tr/en-US/corporate/about-unlu-tekstil “About Us.” Karadag Textile. 2017. Web. https://www.karadagtextile.com/about-us/ “About Us.” Mediterranean shipping Company. 2017. Web. https://www.msc.com/usa/about-us “Buying and sourcing in Turkey.” Drapers. 2017. Web. https://www.drapersonline.com/business-operations/supply-chain/buying-andsourcing-in-turkey/7018069.article “Country Profile Series Turkey In-depth PESTLE insights.” MarketLine. 2017. 1-62. “Clothing.” Republic of Turkey Ministry of Economy. 2017. 1-7. “Country Estimates.” Fibre2Fashion. 2017. Web. http://www.fibre2fashion.com/market-intelligence/countryprofile/turkey-textile-industry-overview/ “Corporate.” Akenna Textile&Design. 2017. Web. http://akenna.com/Corporate.html “Company Profile.” Orient Overseas Container Line. 2017.Web. http://www.oocl.com/eng/aboutoocl/companyprofile/oocltoday/Pages/ default.aspx “Chapter 61.” Harmonized Tariff Schedule of the United States. 2017. 24-28. “Holidays in Turkey in 2017.” Timeanddate. 2017. Web. https://www.timeanddate.com/holidays/turkey/ “Military coup in Turkey: What we know now.” USA TODAY. 2017. Web. https://www.usatoday.com/story/news/world/2016/07/16/military-coup-turkey-what-we-know-now/87171074/ “New Agreement and Bilateral Talks Signal Continued Growth of U.S.–Turkish Commercial Ties.” International Trade Administration. 2017. Web. http://www.trade.gov/publications/ita-newsletter/0311/agreement-us-turkey-ties.asp “Overview.” Hapag-Lloyd. 2017. Web. https://www.hapag-lloyd.com/en/online-business.html “The Tenth Development Plan 2014-2018.” Republic of Turkey Ministry of Economy. 2017. 27. “Turkey Disaster&Risk Profile.” PreventionWeb. 2017. Web. http://www.preventionweb.net/countries/tur/data/

“Turkey Hourly Labour Costs.” Trading Economics. 2017. Web. http://www.tradingeconomics.com/turkey/labour-costs “Trade & Investment Framework Agreements.” Office of the United States Trade Representative. 2017.Web. https://ustr.gov/trade-agreements/trade-investment-framework-agreements “Turkey GDP - Gross Domestic Product.” Countryeconomy.com. 2017. Web. http://countryeconomy.com/gdp/turkey “Turkey GDP Growth Rate.” Trading Economics. 2017. Web. http://www.tradingeconomics.com/turkey/gdp-growth “Turkey.” 2017 Index of Economic Freedom. 2017. Web. http://www.heritage.org/inde

x/country/turkey

“Turkey's textile industry: Improvement in sight?” DW. 2017. Web. http://www.dw.co

m/en/turkeys-textile-industry-improve-

ment-in-sight/a-17880532 “WTO Reports World Textile and Apparel Trade in 2015.” FASH455 Global Apparel & Textile Trade and Sourcing. 2017. Web. https:// shenglufashion.wordpress.com/2016/07/27/wto-reports-world-textile-and-apparel-trade-in-2015/