Advising on International Expansion of Gap Inc.

Assignment for International Business Environment

Group Project: Advising a multinational company on its international business development.
Chosen Company: Gap Inc.

Module Name
International Business Environment I

Word count: 4379

Submission Date: 09/11/2009
Contents
Abbreviationsv
Introduction1
1. Impacts of Globalisation on Clothing Industry1 2. Environmental Analysis of GAP’s Expansion: China vs. Brazil3
Market Environment3
Market Size & Market Potential3
Clothing Industry Facts5
Economic Environment6
Apparel-shopping Attitudes and Behaviors7
Political Environment7
Political Risks7
Corruption8
Regulatory Environment8
Red Tape8
Taxation9
Protecting Investors9
Factors in Value Chain9
Labour Market9
Raw Material Production and Manufacturing Capacity10
Distribution11
Choice and Reasons11
SWOT analysis for GAP entering China13
Opportunities13
Threats14
Strengths and Weaknesses16
Recommendations16
Location and Distribution16
Product and Promotion16
Clothing Production and Company Management 17
Conclusion17
Appendix 19 Reference21

Abbreviations BRIC | Brazil, Russia, India and China | CISGCNCICCPC | China Industry Security GuideChina National Chemical Information CenterCommunist Party of China | CPI | Corruption Perception Index | CSRs EUFDI GAP | Corporate Social Responsibilities European UnionForeign Direct Investment GAP Inc. | GCR | Global Competitive Report | GDPIPCIPL | Gross Domestic ProductIncome per CapitaIntellectual Property Law | IBGE | Brazilian Institute of Geography and Statistics | IPRs | Intellectual Property Rights | NLCL | New Labor Contract Law | SWOTVAT | Strengths, Weaknesses, Opportunities and ThreatsValue Added Tax | WFOEs | Wholly Foreign-Owned Enterprises | WIPO | World Intellectual Property Organization | WTO | World Trade Organization |

Introduction
Gap Inc., with five international brands, is now one of the world’s largest specialty

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