Textile and Apperal Industry Between Sri Lanka & United States of America
TEXTILE AND APPERAL INDUSTRY BETWEEN SRI LANKA & UNITED STATES OF AMERICA
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STUDENT NAME: JAYANI WARNAKULA HEWA
STUDENT ID: WAJCD142
Table of Contents
1.EXECUTIVE SUMMARY 2
2.INTRODUCTION 4
3.UNITED STATES OF AMERICA – SRI LANKA RELATIONS 4
4.INTERNATIONAL LINK BETWEEN SRI LANKA AND USA 7
4.1 TEXTILE INDUSTRY IN USA 7
4.2 TEXTILE INDUSTRY IN SRI LANKA 7
4.3 Sri Lanka’s Position in the Global Value Chain of the Textiles and Clothing Industry 8
5. MAS GROUP ( MAST INDUSTRIES) – Sri Lanka 10
6.MAS GROUP ( MAST INDUSTRIES) – USA 11
7.LEGAL & POLITICAL ENVIORNMENT 12
8. FINANCIAL CLIMATE 14
9.MANAGERIAL & LABOUR ENVIRONMENT 15
10.KEY PLAYERS & THE CONSUMERS OF MAST INDUSTRIES 16
11.KEY COMPETITORS IN SRI LANKA 17
12.KEY INTERNATIONAL COMPETITORS 17
China: 17
Hong Kong: 17
Bangladesh: 18
Germany: 18
13 . RECOMMANDATIONS 19
14. CONCLUSION 20
15. REFERENCE LIST 21
1.EXECUTIVE SUMMARY
International business refers to all those business exercises which represents cross border transactions of merchandise, administrations, and resources between two or more countries. Trading internationally allows countries to contribute in global economy by encouraging the foreign direct investment to Sri Lanka.
The textile and apparel sector is one of the most significant and dynamic contributors to Sri Lanka's overall economy. Sri Lanka's strength in textile and apparel manufacturing lies in its ability to produce high quality goods at competitive prices, combined with an industry structure which is flexible and uniquely capable in servicing leading international brands. It contributes 39% to industrial production while representing 43% of total export.
The United States is the main importer of textile goods from Sri Lanka, accounting for 76% in total. • Sri Lanka is ranked 12th among the top apparel exporters to the United States in terms of value. The industry is globally competitive, ranking fourth in global export value behind China, India, and Germany. U.S. exports of textiles increased by 45 percent between 2009 and 2014, to $18.3 billion. More than 65 percent of U.S. textile exports go to our free trade agreement partner countries.
The apparel export industry has recorded phenomenal growth and development in the past two decades primarily due to the quota system under bilateral trading agreements of the Multi Fibre Arrangement. The Multi Fibre Arrangement (MFA) introduced a quota system for the exports of textiles and apparel products to developed countries, mainly to the USA, EU and Canada. The quota system provided a protective umbrella for developing countries, such as Sri Lanka, which assured market access to the huge markets of US and EU which otherwise may not have been accessible to the developing countries. Over the years successive governments have placed increasing importance on this industry as it generates the highest foreign exchange earnings in the industrial sector and also because this industry is the second highest provider of employment next to the plantation industry.
The impact of trade admission to the overall material and clothing industry amidst India and Sri Lanka are assessed all through the report.
2.INTRODUCTION
International business refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. International Business comprises all commercial transactions such as private and governmental, sales, investments, logistics, and transportation that take place between two or more regions, countries and nations beyond their political boundaries.