1. Team 2: Aornaba Chaudary Aditya Mahajan Ilkin Ilyaszade International Trading Environment BASM 530 February 3rd, 2010 Project 2

2. Agenda Introduction of the Idea Demand in Destination Market Competitive Advantage of Exporting Country Comparative Advantage Financial Costs Trade Costs

3. The idea: Importing Specialized Sports Apparel

4. Imports & Expenditures on Clothing Imports from Sri LankaExpenditures on Clothing in Canada

5. Competitive Advantages Cheap Labour Costs – Average Hourly Labour Cost (Wages and social charges - in US $) Country199219982000 Canada10.513.9314.29 USA1012.9714.24 Mexico1.72.232.2 Sri Lanka 0.490.46 Korea3.83.635.32

6. Competitive Advantages Literate labor force

8. Major Challenge High Lead Times - Inefficient Fabric Base

9. Financial Analysis Costs calculated for 500 Kimonos Manufacturing Costs5,000 US $ Freight Charges1,987.5 US $ Import Duties900 US $ Total Cost6,097.5 US $

10. Financial Analysis Costs Calculated for 1 Kimono Total Cost per unit12.195 US $ Selling price per unit50.00 US $ Profit per Kimono37.805 US

11. Trade Costs Political Separation – Exchange Rate Trend Physical Separation – Shipping costs – Customs Tariffs While Importing – Export Duties Relational Separation – Himashanta—Our Local Contact

12. Exchange Rate Trend 1/Jan/2000 - 31/Dec/2009 © 2010 by Prof. Werner Antweiler, University of British Columbia, Vancouver BC, Canada.

13. Conclusion