General Environmental Analysis

& Creating Resilient for Covid-19

and Business Operations for the
proposed expansion

MGT 4030- International Management

Spring 2021

Presented to: Mr. Sathika Wickramasinghe

Prepared by:
Jeevanthy Selvadas 5682
Yasiru Perera 5146
Malmi Madurabhashini 5781
Irushi Minipura 6150
Dushakya Ranali 00006764
Linal Perera 7952
1
TABLE OF CONTENTS

.........................................................................................................................................................1

ACKNOWLEDGMENT...............................................................................................................4

EXECUTIVE SUMMARY...........................................................................................................5

SECTION 1.....................................................................................................................................6

INTRODUCTION TO APPAREL AND TEXTILE MANUFACTURING INDUSTRY.......6

EXISTING COUNTRIES...................................................................................................................6
Sri Lanka.................................................................................................................................6
Vietnam....................................................................................................................................6
Malaysia..................................................................................................................................7
POTENTIAL COUNTRIES................................................................................................................7
Thailand...................................................................................................................................7
Bangladesh..............................................................................................................................8
Ukraine....................................................................................................................................8
Mexico.....................................................................................................................................8
India.........................................................................................................................................9

PESTEL ANALYSIS: EXISTING COUNTRIES....................................................................10

POLITICAL FACTORS..................................................................................................................10
ECONOMIC FACTORS..................................................................................................................11
SOCIAL FACTORS.......................................................................................................................13
TECHNOLOGICAL FACTORS........................................................................................................14
ENVIRONMENTAL FACTORS.......................................................................................................15
LEGAL FACTORS........................................................................................................................16
POLITICAL FACTORS..................................................................................................................19

PESTEL ANALYSIS: POTENTIAL COUNTRIES................................................................19

POLITICAL FACTORS............................................................................................................19

POLITICAL FACTOR ANALYSIS AND PREDICTIONS...................................................22

2
 ECONOMIC FACTORS...........................................................................................................25

ECONOMIC FACTOR ANALYSIS AND PREDICTIONS...................................................29

SOCIAL FACTORS..................................................................................................................32

SOCIAL FACTOR ANALYSIS AND PREDICTIONS..........................................................34

TECHNOLOGICAL FACTORS...............................................................................................37

TECHNOLOGICAL FACTOR ANALYSIS AND PREDICTIONS......................................39

ENVIRONMENTAL FACTORS..............................................................................................42

ENVIRONMENTAL FACTOR ANALYSIS AND PREDICTIONS.....................................44

LEGAL FACTORS...................................................................................................................46

LEGAL FACTOR ANALYSIS AND PREDICTIONS............................................................50

SELECTION OF THE INVESTMENT COUNTRY..............................................................................53

GAP ANALYSIS & COMFORT ZONES.................................................................................54

SWOT ANALYSIS FOR THE SELECTED COUNTRY........................................................59

SECTION 2...................................................................................................................................60

GENERAL ASPECT......................................................................................................................60
INDUSTRY SPECIFIC ASPECT......................................................................................................64

CONCLUSION............................................................................................................................67

WORKS CITED..........................................................................................................................68

3
ACKNOWLEDGMENT

We are very grateful that we were able to complete our 1st International Management group task
within the allotted time. The end result of this study, success, requires a lot of advice and help
from many people, and we feel honored to receive it at the end of the study. We are indebted to
all of this follow-up and assistance, and we must not forget to thank everyone.

We would especially grateful and thankful to our lecturer Mr. Sathika Wickremesinghe for
allowing us to prepare this research report in order to broaden our knowledge on International
Management.

4
EXECUTIVE SUMMARY

5
SECTION 1

INTRODUCTION TO APPAREL AND TEXTILE MANUFACTURING

INDUSTRY

Existing Countries

Sri Lanka

The Apparel industry of Sri Lanka is a one of the most

leading sectors that evolved as country’s one of the
primary export earners which is 38% out of 50 % of the
total exports of other product. This provides the largest

employment opportunities in the nation

which is around 300,000 direct and
600,000 indirect employments. Its top
major markets are United States, United
Kingdom, Italy, Belgium etc. Its
performance in export is always stays
peak and bring around 4 to 5 billion
USD revenue to the country since 2010 to 2020. Despite the fact of pandemic in 2020 it was able
to earn around 3 billion USD in 2020.

Vietnam

Vietnam is the fourth Largest exporter for textile, garment

worldwide which earned around 36 billion USD in 2018
and 39 billion USD in
its export’s revenue.
The Apparel Industry
of the Vietnam is the strongest pillar of it economy and the

6
industry contributes 16% to the GDP of the country. The industries export share in world wide
6.2% and it holds 2.57 billion USD as its market value.

Malaysia

Malaysia Apparel and Textile industry is categorized as

Spinning, Weaving, Yarn, Knitting, textile processing
etc. They are all man made and natural fiber. It
contributes 1.7 % to the GDP of the Country it’s the
third largest foreign exchange earner. Approximately 90
% of foreign investment is concentrated on Apparel industry of Malaysia. Its top major markets
are UK, USA, Germany, and Japan.

Potential Countries

Thailand

The Apparel and textile industries in Thailand plays vital

role in the country’s GDP. Over 50 years of development
Thailand apparel industry has evolved into more
sophisticated and diversified industry that consists
synthetic yarns to wools fabrics, cotton bed lines and
high-end fashions techniques. Also, Thailand is renowned
around the world for being one of the international’s biggest producers for fabric, sports attires,
womenswear, and casualwear. Thailand is likewise an international-renowned silk manufacturer,
as well as a spin or twist yarn producer. Furthermore, super completing, dyeing, and printing
offerings additionally make it one of the maximum popular fabric outsourcing locations inside
the worldwide marketplace. It exported around 7.52 billion USD worth of apparel goods, out of
that 3.42 billion USD worth of textiles exported to Asia- pacific. Also, it is projected to reach
around 8372 million USD in 2021.

7
Bangladesh

The garment industry of Bangladesh has been the key

export department and a main source of foreign
exchange for the closing 25 years. At present, the use of
a generates about five billion well worth of merchandise
each year via exporting garment. The industry affords
employment to about three million workers of whom
90% are ladies. In 2020, the share of ready-made garment exports amounted to about 83% of the
whole exports. Between January and November in 2019, Bangladesh exported worth
$30.14billion and in 2018, Bangladesh exported $32.93billion.

Ukraine

There is super scope to increase consistent with capita

intake of garments in Ukraine. The emergence of
Ukraine from the crises of 2014 and 2015 permits for
sustained, if slow, motion toward European norms. The
Ukraine Apparel and Textile industry consists dyeing,
Knitting, textile process etc. Also, the textile
productions exceed USD 1200 million and apparel and
fur manufactures exceeds 1500 million USD.

Mexico

This is the third largest apparel industry in Latin

America overridden Brazil and Argentina. The market
value of the apparel market in Mexico accelerated with
the aid of five percentage in 2019, whilst as compared to
the market value two years earlier. Out of the 29.3 billion

8
USD of the Mexican clothing
marketplaces in 2019, the women’s
section accounted for 14.3 billion
USD. Mexican Apparel industry
has become versatile and diversified
by involving and exploring several
textiles process such as cotton
farming, synthetic fiber manufacturing to build a yarn and fabric. It is volume of the apparel
market in pieces is 3 billion and value of export apparel is 4.1 billion USD.

India

India apparel sector is the largest producer of cotton and

jute in the world, and the second largest manufacturer of
silk and fiber and producer of polyester also being one of
the largest employment providers. This contributes to 2
% to India’s GDP and 12 % to the export earnings. The
Foreign Direct investment in the textile industry has
developed up to 3.45 billion USD in 2020 and its
expected to reach 300 billion USD in exports by 2024-25. As a result of this projection its
forecasted that the Indian market share would be 5 % to 15 %. Also, seven mega textiles parks
have been planned in future. Its export revenue 22.4 billion USD in 2019. There is a 28 % of
compound annual growth from 2019 – 2021 due to apparel industry.

9
PESTEL Analysis: EXISTING COUNTRIES

Political Factors

Factors Sri Lanka Malaysia Vietnam

Political Stability 2017 – (-0.07) 2017 – (0.12) 2017 – (0.29)
Index 2018 – (-0.14) 2018 – (0.26) 2018 – (0.11)
-2.5 (weak) 2019 – (-0.23) 2019 – (0.11) 2019 – (0.13)
+2.5 (strong)

Ease of doing 2018 – 111th 2018 – 24th 2018 – 68th

business index 2019 – 100th 2019 – 15th 2019 – 69th
(out of 190) 2020 – 99th 2020 – 12th 2020 – 70th

Government 2017 – (-0.15) 2017 – 0.83 2017 – 0.01

effectiveness 2018 – (-0.24) 2018 – 1.08 2018 – 0
-2.5(weak) 2019 – (-0.11) 2019 – 1.0 2019 – 0.04
+2.5(strong)
Short term political 2017-4 2017-1 2017-2
risk 2018-4 2018-1 2018-2
1= low 2019- 4 2019- 1 2019- 2
7=high
Medium/long-term 2017 – 5.0 2017 – 3.0 2017 – 4.0
political risk 2018 – 5.0 2018 – 3.0 2018 – 4.0
1=low 2019 – 5.0 2019 – 3.0 2019 – 4.0
7=high
Trade openness; 2017 – 50.89% 2017 – 133.16% 2017 – 200.38%
exports plus imports 2018 – 53.23% 2018 – 130.43% 2018 – 208.31%
as% of GDP 2019 – 52.37% 2019 – 120% 2019 – 210.4%

Corruption perception 2018- 38 2018 - 47 2018 - 33

index 2019-38 2019-53 2019- 37
100= no corruption 2020- 38 2020- 51 2020- 36

10
Expropriate risk 2017 - 4 2017 - 2 2017 - 3
index 2018- 4 2018 - 2 2018 - 3
1=low 2019 - 4 2019 - 2 2019 - 3
7=high
Fragile state index 2018 –84.9 2018 –63.6 2018 –68.4
0= low 2019 –84.0 2019 –60.5 2019 –66.1
120- high 2020 – 81.8 2020 -57.6 2020 -63.9
VAT 12% 6% 10%
Corporate tax rate 2018 – 28.00% 2018 – 24.00% 2018 – 20.00%
2019 – 28.00% 2019 – 24.00% 2019 – 20.00%
2020 – 28.00% 2020 – 24.00% 2020 – 20.00%

Economic Factors

Factors Sri Lanka Malaysia Vietnam

GDP per capita 2017 – 4,077.0 2017 – 10,259.2 2017 – 2,365.6
2018 – 4,080.6 2018 – 11,377.5 2018 – 2,566.6
2019 – 3,853.1 2019 – 11,414.2 2019 – 2,715.3
GDP growth rate 2017 – 3.42% 2017 – 5.8% 2017 – 6.81%
2018 – 3.02% 2018 – 4.8% 2018 – 7.07%
2019 – 2.3% 2019 – 4.3% 2019 – 7.0%
FDI – Millions 2017 - 1,372.72 2017 - 9,368.47 2017 - 14,100.00
(USD) 2018 - 1,614.04 2018 - 8,570.09 2018 - 15,500.00
2019 - 758.19 2019 - 7,650.47 2019 - 16,120.00
Economic freedom 2018 – 58% 2018 – 75% 2018 – 53%
Index% 2019 – 56% 2019 – 74% 2019 – 55%
2020 – 57% 2020 – 75% 2020 – 59%
Business freedom 2018 – 76% 2018 - 84% 2018 – 63%
Index % 2019 – 75% 2019 – 84% 2019 – 64%
2020 – 77% 2020 – 88% 2020 – 66%
Investment freedom 2018 – 40% 2018 – 60% 2018 – 25%
index % 2019 – 40% 2019 – 60% 2019 – 30%
2020 – 40% 2020 – 60% 2020 – 40%

11
 Credit rating (Moody’s) CCC+ - Stable BB - Stable (A-) - Negative

Inflation rate 2018 – 2.1% 2018 – 0.9% 2018 – 3.5%

2019 – 3.5% 2019 – 0.7% 2019 – 2.8%
2020 – N/A 2020 – N/A 2020 – N/A
interest rate 2018 – 6.9% 2018 – 4.2% 2018 – 3.8%
2019 – 8.9% 2019 – 4.8% 2019 – 5.8%
22020 – N/A 2020 – N/A 2020 – N/A
Exchange rate to 2018 - 180.4 2018 - 4.184 2018 – 23,296.091
USD 2019 - 181.141 2019 - 4.144 2019 – 23,170.816
2020 - 187.063 2020 - 4.055 2020 - 23,106.570
Unemployment rates 2018 – 4.12% 2018 – 3.35% 2018 – 1.99%
2019 – 4.2% 2019 – 3.32% 2019 – 2.01%
2020 – 4.18% 2020 – 3.38% 2020 – 2.02%
Exports % of GDP 2018 – 22.92% 2018 – 68.57% 2018 – 105.83%
2019 – 23.12% 2019 – 65.22% 2019 – 106.80%
2020 – N/A 2020 – N/A 2020 – N/A
FDI % of GDP 2018 – 1.83% 2018 – 2.39% 2018 – 6.32%
2019 – 0.90% 2019 – 2.10% 2019 – 6.15%
2020 – N/A 2020 – N/A 2020 – N/A
Quality of overall 37.9 46.4 38.4
infrastructure index Rank – 78/131 Rank – 48/131 Rank - 74/131

Import tariffs for 0% 6.1% 15% or less

required raw
materials

Social Factors

Factors Sri Lanka Malaysia Vietnam

Labor force(% of the 2018 - 58.8 2018 - 67.9 2018 - 82.7
total population) 2019 - 58.7 2019 - 68.2 2019 - 82.8
2020 - 58.6 2020 - 68.5 2020 - 82.9

12
Population growth 2018 – 1.05% 2018 – 1.35% 2018 – 0.99%
rate % 2019 – 0.6% 2019 – 1.3% 2019 – 1%
2020 – N/A 2020 – N/A 2020 – N/A
Income level (GNI 4,020 11,230 2,540
per capita – US$)
Working age 2017 – 65% 2017 – 69% 2017 – 70%
population 2018 – 65% 2018 – 69% 2018 – 70%
2019 – 65% 2019 – 69% 2019 – 69%
Education index 0.752 0.700 0.617
(2015)
Literacy rate 2016 – 92.39% 2016 – 94.88% 2016 – N/A
2017 – 91.90% 2017 – 95.08% 2017 – N/A
2018 – 91.71% 2018 – 94.85% 2018 – 95.00%
Group grievance 2018 – 8.7 2018 – 6.2 2018 – 5.7
index 2019 – 9.0 2019 – 6.0 2019 – 5.8
0=low 2020 – 9.1 2020 – 5.7 2020 – 5.5
10-high
Demographic 2018 – 6.7 2018 – 5.0 2018 – 5.8
pressures index 2019 – 6.0 2019 – 4.7 2019 – 5.5
0=low 2020 – 5.7 2020 – 4.4 2020 – 5.0
10=high
Happiness index 2018 – 4.47 2018 – 6.32 2018 – 5.10
0=Unhappy 2019 – 4.37 2019 – 5.34 2019 – 5.18
10=happy 2020 – 4.33 2020 – 5.38 2020 – 5.35
Human Development 2017 - 0.775 2017 - 0.805 2017 - 0.696
Index 2018 - 0.779 2018 - 0.805 2018 - 0.700
(0-1) 2019 - 0.782 2019 - 0.810 2019 - 0.704

Technological Factors

Factors Sri Lanka Malaysia Vietnam

R&D 0.1 1.4 0.5
Information and 2018 – 49.3 2018 – 67.6 2018 – 52.7

13
communication 2019 – 50.3 2019 – 79.4 2019 – 57.5
technology index/IDI 2020 – 53.9 2020 – 79.4 2020 – 62.8
Values
1=worst
100=best
ICTs and Business 2017 – 4.60 2017 – 5.60 2017 – 4.40
model creations 2018 – 4.50 2018 – 5.60 2018 – 4.40
1=not at all 2019 – 56.90 2019 – 74.40 2019 – 56.10
7=to a great extent
FDI and technology 2015 – 4.66 2015 – 5.52 2015 – 4.24
transfer 2016 – 4.27 2016 – 5.39 2016 – 4.20
2017 – 3.96 2017 – 5.36 2017 – 4.13

Digital skills among 2017 – 3.89 2017 – 5.35 2017 – 3.97

population 2018 – 3.86 2018 – 5.39 2018 – 3.67
1=worst 2019 – 4.23 2019 – 5.37 2019 – 3.77
7=best
Global Innovation 2018 – 28.7 2018 – 43.0 2018 – 37.9
index(0-100) 2019 – 28.5 2019 – 42.7 2019 – 38.8
2020 – 23.8 2020 – 42.4 2020 – 37.7
Internet infrastructure 2017 – 133.47 2017 – 136.12 2017 – 126.87
(Mobile-Broadband 2018 – 115.06 2018 – 134.53 2018 – 147.2
Subscriptions Per 100 2019 – 115.06 2019 – 139.6 2019 – 141.23
Inhabitants)
Electrification rates 2016 – 97.5% 2016 – 100% 2016 – 99.2%
2017 – 97.5% 2017 – 100% 2017 – 100%
2018 – 99.6% 2018 – 100% 2018 – 100%

Environmental Factors

Factors Sri Lanka Malaysia Vietnam

14
Carbon footprint/CO2 2014 – 0.9 2014 – 8.1 2014 – 1.8
emission (metric tons 2015 – 1.0 2015 – 7.8 2015 – 2.0
per capita) 2016 – 1.1 2016 – 8.1 2016 – 2.1
Environmental Rank – 90/129 Rank – 62/129 Rank – 110/129
performance ranking
Environment 39 47.9 33.4
performance index
0=worst
100=best

Cost of electricity $0.067 $0.060 $0.080

1kWh
Pressures from NGOs There is quite a lot of The NGO’s of NGO's are mainly
pressure from NGOs Malaysia are first of tackling the issue of
regarding issues such all catalysts for income inequality in
as animal cruelty, change, mainly in order to reduce the
human rights and domestic matters. poverty levels of
etc… Most of these They help transform Vietnam. This
issues are dealt with society by raising problem is being
by the government public consciousness, addressed by NGOs
but the government by initiating change like Oxfam, which
refuses to be and helping people promote governance
pressurized by diversify and enhance reforms such as tax
NGO’s as stated by their overall life and wage reforms
President Gotabaya quality. and funding for
Rajapaksa. vulnerable
communities.

Legal Factors

Factors Sri Lanka Malaysia Vietnam

Minimum wage $2.05 $1.36 $2.31

15
(Daily)
Maximum 9 hours daily or 48 hours 8 hours daily or 48 8 hours daily or 48
working duration weekly hours weekly hours weekly
Minimum 14 14 15
employment age
Starting business Procedure stage Procedure stage Procedure stage
Time Time Time
2017 – 9 2017 – 22 2017 – 23.5
2018 – 9 2018 – 13.5 2018 – 17
2019 – 8 2019 – 17.5 2019 – 16
Enforcing a Duration(days) - 1,318 Duration - 425 Duration - 400
contract
Rule of law index 2018 – N/A 2018 – N/A 2018 – N/A
0-1 2019 - 0.52 2019 - 0.55 2019 - 0.49
2020 - 0.52 2020 - 0.58 2020 - 0.49
Strengths of legal 2017 – 2 2017 – 7 2017 – 8
rights index 2018 – 2 2018 – 7 2018 – 8
1-12 = best 2019 – 2 2019 – 7 2019 – 8
Business impact 2015 – 38 2015 – 18 2015 – 63
of rules on FDI 2016 – 68 2016 – 48 2016 – 94
value 2017 – 84 2017 – 50 2017 – 105
1 – 7 =best
Health safety Factories Ordinance, The main legislation There is much
laws Maternity Benefit that deals with legislation that
Ordinance, employment health guarantees the
Workmen Compensation, and safety is the workplace safety and
Employment of Women, Occupation Safety health and also
Young Persons & and Health Act 1994 compensations for
Children, (OSHA). In addition employees that get
Shop & Office to this, legislatures into accidents or
Employees, The National such as the contract diseases in
Policy on Elimination of Employees’ Social the workplace.
Child Labor Security Act 1969
(SOCSO) gives

16
 compensation if a
workplace injury
happen.
Copyright and The Intellectual Property IP right owners of Vietnam has a very
patent laws(IP is guarded under the US should apply to strong IP framework
rights) Intellectual Property Act get the IPR which consists of
No 36 of 2003 protection in various trade
Malaysia before they agreements.
even consider
introducing their
products and services
to the Malaysian
Market
Discrimination The Fundamental rights of The Malaysian The National
laws workers are protected by constitution bans Assembly of
the Constitution. Article discrimination Vietnam issued a
12 prohibits gender against workers latest version of the
discrimination and other based on gender, Labor Code in the
discriminatory acts. religion, and race. country which is the
main legislation that
protects workers
from discrimination.

17
Political Factors

PESTEL Analysis: POTENTIAL COUNTRIES

All possible country indicators are classified in three places. Various ratings are assigned to the
ranking in order to determine the country with the best overall status. The ranking is as
follows,

1st place 15 points

2nd place 10 points
3rd place 5 points

Therefore, calculate the number of points each country has at the end of each environmental
factor.

POLITICAL FACTORS

Factors Thailand Bangladesh Ukraine Mexico India

Political 2016: (-0.99) 2016: (-1.26) 2017: (-1.86) 2016: (-0.63) 2016: (-0.95)
stability index 2017: (-0.75) 2017: (-1.26) 2017: (-1.87) 2017: (-0.72) 2017: (-0.76)
(-2.5 week,2.5 2018: (-0.79) 2018: (-0.99) 2018: (-1.86) 2018: (-0.57) 2018: (-0.91)
strong) 2019:(-0.54) 2019: (-0.92) 2019: (-1.52) 2019: (-0.71) 2019: (-0.7)

Political 2017: 37 2017: 28 2017: 30 2017: 29 2017: 40

Corruption 2018: 36 2018: 26 2018:32 2018: 28 2018: 41
Perceptions 2019: 36 2019: 26 2019: 30 2019: 29 2019: 41
Index 2020: 36 2020: 26 2020: 33 2020: 31 2020: 40
100 – No
Corruption Rank:104/180 Rank:146/180 Rank:117/180 Rank:124/180 Rank: 86/180

18
Expropriation 2017: 4 2017: 5 2017: 4 2017: 3 2017: 3
risk index 2018: 4 2018: 5 2018: 4 2018: 3 2018: 3
(1=low, 2019: 4 2019: 5 2019: 4 2019: 3 2019: 3
7=high)
Rank: 87/173 Rank: 28/173 Rank: 89/173 Rank: 103/173 Rank: 100/173
Fragile state 2017: 76.2 2017: 89.1 2017: 74 2017: 74.3 2017: 77.9
index 2018: 75 2018: 90.3 2018: 72.5 2018: 71.5 2018: 76.3
(0 (low) - 120 2019: 73.1 2019: 87.7 2019: 71 2019: 69.7 2019: 74.4
(high)) 2020: 70.8 2020: 85.7 2020: 69.1 2020: 67.2 2020: 75.3

Rank: Rank: Rank: Rank: Rank:

80/176 38/176 90/176 96/176 66/176
Short term 2017- 2019: 2017-2019: 2017-2019: 2017-2019: 2017-2019:
Political risk 2 3 5 2 2
index Rank: Rank: Rank: Rank: Rank:
1 (low) 148/200 82/200 55/200 135/200 128/200
7 (high)
Medium/long- 2017-2019: 3 2017-2019: 4.8 2017-2019: 7 2016-2019: 3 2016-2019: 3
term political Average Average Average Average Average
risk (1=low,
7=high) Rank: Rank: Rank: Rank: Rank:
151/201 118/201 38/201 144/201 138/201
Ease of doing 2017: 26 2017: 177 2017: 76 2017: 49 2017: 100
business (1-20 2018: 27 2018: 176 2018: 71 2018: 54 2018: 77
ranking) 2019: 21 2019: 168 2019: 64 2019: 60 2019: 63
=good
Corporate tax 2017-2019: 2017-2019: 2017-2019: 2017-2019: 2017:34.61%
rate 20% 25% 18% 30% 2018:35%
Stable rates Stable rates Stable rates Stable rates 2019: 30%
throughout throughout throughout throughout Minor changes
in rates.
Trade 2017:120.91 2017: 35.3% 2017:103.72% 2017: 77.12% 2017:40.72%
openness % 2018: 38.24% 2018: 99.12% 2018: 80.56% 2018: 43.4 %
2018:120.9% 2019: 36.76% 2019: 90.17% 2019: 77.92% 2019: 39.55 %
2019:110.39

19
 %

VAT 2017-2019: 2017-2019: 2017-2019: 2017-2019: 2017-2019:

7% 15% 20% 16% 18%
Government 2017: 0.38 2017: (-0.73) 2017: (-0.46) 2017: (-0.03) 2017: 0.09
effectiveness 2018: 0.35 2018: (-0.75) 2018: (-0.42) 2018: (-0.15) 2018: 0.28
2019:0.36 2019: (0.74) 2019: (-0.3) 2019: (0.16) 2019:0.17

Country: Political Factors Points

Thailand 125 (1st place)
Bangladesh 15
Ukraine 50 (3rd place)
Mexico 90 (2nd place)
India 50 (3rd place)

20
POLITICAL FACTOR ANALYSIS AND PREDICTIONS

1. Thailand

Favorable
Improvment in political stability
Less political corruption
State Fragile decreasment
Short/ medium/ long term political risk is law
Easy of dong business
Comparatively less corportae tax
Hightes trade openness in the country
less VAT
High government effectivess
Unfavorable
Comparatively high expropriation risk

2. Bangladesh

Favorable

Comparatively less corportae tax

Comparatively less VAT

Unfavorable
High political corruption
Short/ medium/ long term political risk is high
State Fragile is high
Easy of doing business is less
Low trade openness
Less government effectivess

21
 3. Ukraine

Favorable

State Fragile decreasment

Comparatively Less political corruption
Comparatively esay to doing business
Less corportae tax
Comparatively trade openness is high

Unfavorable

Short/ medium/ long term political risk is high

Comparatively high expropriation risk
High VAT rate
Less government effectivess

4. Mexico

Favorable
State Fragile decreasment
Comparatively short/ medium/ long term political risk is low
Comparatively esay to doing business
Comparativel tarde openness is high
Comparatively low VAT rate
22 Comparatively government effectiveness is high

Unfavorable
High political corruption
 5. India

Favorable
Less political corruption
State Fragile decreasment
Comparatively short/ medium/ long term political risk is low
Comparatively government effectiveness is high

Unfavorable
Easy of doing business is less
High corporate tax
Low trade openness
High VAT rate

23
ECONOMIC FACTORS

Factors Thailand Bangladesh Ukraine Mexico India

GDP per 2017:6,592.91 2017: 1,563.91 2017: 2,640.68 2017: 9,287.85 2017:1,981.65
capita in 2018: 7,295.48 2018: 1,698.35 2018: 3,096.82 2018: 9,686.51 2018: 2,005.86
current US 2019: 7,806.74 2019: 1,855.74 2019: 3,659.03 2019: 9,946.03 2019: 2,099.60
dollar

FDI (USD 2017: 8.05 2017: 2.798 2017: 3.92 2017: 33.68 2017: 39.97
billions) 2018: 13.25 2018: 3.61 2018: 4.58 2018: 33.54 2018: 42.12
2019: 4 2019: 1.6 2019: 49 2019: 216.06 2019: 49

Economic 2017: 66.2 2017: 55.0 2017: 48.1 2017: 63.6 2017: 52.6
freedom 2018: 67.1 2018: 55.1 2018: 51.9 2018: 64.8 2018: 54.5
2019: 68.3 2019: 55.6 2019: 52.3 2019: 64.7 2019: 55.2
2020: 69.4 2020: 56.4 2020: 54.9 2020: 66.0 2020: 56.5

24
Credit Not available Moody’s Ba3 Moody’s Caa2 Not available Moody’s Baa2
rating (2017) stable (Apr positive (Aug 25 (2017) stable (Nov 16
(Moody’s) 2017) 2017) 2017)
Not available Moody’s A3
(2018) Moody’s Ba3 Moody’s Caa1 stable (Apr 11 Not available
stable (Oct stable (Dec 21 2018) (2018)
Moody’s 2018) 2018)
Baa1 positive Moody’s A3 Moody’s Baa2
(Jul 25 2019) Not available Moody’s Caa1 negative (Jun 05 negative (Nov 07
(2019) positive (Nov 22 2019) 2019)
Moody’s 2019)
Baa1 stable Moody’s Ba3 Moody’s Baa1 Moody’s BBB
(Apr 21 2020) stable (Mar Moody’s B3 negative (Apr negative (May 21
2020) stable (Jun 12 17 2020) 2020)
2020)

Inflation 2017:0.67% 2017:5.4% 2017:14.4% 2017: 6% 2017:3.6%

rate (% of 2018:1.06% 2018:5.8% 2018:10.9% 2018:4.9% 2018:3.4%
CPI) 2019:0.71% 2019:5.5% 2019:7.9% 2019:3.7% 2019:4.8%
2020: -0.43% 2020:5.7% 2020:3.2% 2020:3.4% 2020:4.9%

Rank:188/222 Rank: 47/222 Rank:17/222 Rank:42/222 Rank: 83/222

Interest rate 2017:1.29% 2017: 3.07% 2017: -4.67% 2017: 7.2% 2017: 6%
2018:1.29% 2018: 3.84% 2018: 3.126% 2018: 8.2% 2018: 6%
2019:1.25% 2019: 4.88% 2019: 10.813% 2019:7.2% 2019: 5.4%
2020: 0.5% 2020: 2.93% 2020: 10% 2020: 7% 2020: 3.51%

Exchange 2017/12: 2017/12: 2017/12: 2017/12: 2017/12: 63.8456

Rate to USD
32.5070 THB 84.8419 BDT 27.6772 UAH 19.6419 MXN INR
(1 USD=
units) 2018/12: 2018/12:
32.0608 THB 81.1829 BDT 2018/12: 2018/12: 2018/12: 63.6748
27.7210 UAH 19.2472 MXN INR
2019/12: 2019/12: 2019/12: 2019/12: 69.306
29.6800 THB 81.7703 BDT 25.8129 UAH 2019/12: INR

25
 19.6349 MXN
2020/12: 2020/12: 2020/12: 28.329 2020/12: 73.0089
32.0608 THB 83.2724 BDT UAH 2020/12: INR
19.6349 MXN
Unemploym 2017: 8.3 2017: 4.37 2017: 9.27 2017: 3.42 2017: 5.42
ent Rates
2018: 7.7 2018: 4.28 2018: 9.35 2018: 3.28 2018: 5.33
(%)
2019: 7.5 2019: 4.19 2019: 8.8 2019: 3.43 2019: 5.36
2020: 8 2020: 4.15 2020: 8.93 2020: 3.65 2020: 6.41

Exports % 2017: 66.68 2017: 15.04 2017: 48.01 2017: 37.65 2017: 18.78
of GDP
2018: 64.86 2018: 14.8 2018: 45.19 2018: 36.26 2018: 19.85
2019: 59.76 2019: 15.32 2019: 41.17 2019: 38.83 2019: 18.41

FDI % of 2017: 1.8 2017: 0.7 2017: 3.5 2017: 2.9 2017: 1.5
GDP
2018: 2.6 2018: 0.8 2018: 3.5 2018: 3.1 2018: 1.6
2019: 1.1 2019: 0.6 2019: 3.8 2019: 2.3 2019: 1.8

Indirect Tax 2017- 2020 2017- 2020 2017- 2020 2017- 2020 2017- 15%
Rate %
7% 15% 20% 16% 2018- 2020 18%

Business 2017: 70 2017: 53 2017: 62 2017: 71 2017: 53

Freedom
2018: 77 2018: 52 2018: 63 2018: 68 2018: 86
Index (0
-100 2019: 83 2019: 51 2019: 68 2019: 68 2019: 57
2020: 83 2020: 52 2020: 61 2020: 67 2020: 66

Investment 2017: 50 2017: 50 2017: 25 2017: 70 2017: 40

Freedom
2018: 55 2018: 50 2018: 35 2018: 75 2018: 40
Index (%)
2019: 55 2019: 45 2019: 35 2019: 75 2019: 40
2020: 55 2020: 45 2020: 35 2020: 75 2020: 40

Quality of 2020: 40.1 2020: 33.9 2020: 33.1 2020: 43 2020: 38.1
Overall
Infrastructur
e Index Rank: Rank: Rank: Rank: Rank:
67/131 92/131 94/131 56/131 75/131

26
Country: Economic Factors Points
Thailand 140 (2nd place)
Bangladesh 55 (3rd place)
Ukraine 50
Mexico 150 (1st place)
India 35

Import tariffs on Raw materials

Thailand Bangladesh Ukraine Mexico India
Cotton 0 10%
Polyurethane.
Polyamide 5% 4% 20%
Polypropylene 3.7% 5.5% 10%
Polyester 10% 10% 10%

ECONOMIC FACTOR ANALYSIS AND PREDICTIONS

1. Thailand

27
Favorable
Comparatively high GDP per capita
Increasement in econimic freedom
Stabiliy in credit rating
Low (stable) inflation rate
Stable intrest rate
Less unemployeement rate
High exports % of GDP
Low indirect tax rate
Comparatively high investment freedom index
High infastructure quality

Unfavorable
Decresment in FDIs
Comparatively instable in exhange rate

2. Bangladesh

Favorable
Comparatively increasement in econimic freedom
Stabiliy in credit rating
Low (stable) inflation rate
Comparatively stable intrest rate
Comparatively stable exchange rate
Low unemployeement rate
Low indirect tax rate
Comparatively high investment freedom index
Unfavorable
Low GDP per capita
Decresment in FDIs
Low exports % of GDP
Low infastructure quality

28
 3. Ukraine

Favorable
Comparatiely high GDP per capita
Comparatively incresment in FDIs
Instability in credit rating
Comparatively stable exchange rate
High exports % of GDP

Unfavorable
Low economic freedom
High inflation rate
Instable in interest rate
High unemployment
High idirect tax rate
Low investment freedom index
Low infastructure quality

4. Mexico

Favorable
High GDP per capita
Incresment in FDIs
Comparatively increasement in econimic freedom
Comparatively stable intrest rate
Stable exchange rate
Low unemployeement rate
Comparatively high exports % of GDP
Comparatively low indirect tax rate
High investment freedom index
High infastructure quality
Unfavorable
Instability in credi rating
High inflation rate
29
Low exports % of GDP
 5. India

Favorable
Incresment in FDIs
Stabiliy in credi ratin
Comparatively low (stable) inflation rate
Comparatively low unemployeement rate
Comparatively high infastructure quality
Unfavorable
Comparatively low GDP per capita
Low economic freedom
Instable in interest rate
Comparatively instable in exhange rate
High indirect tax rate
Low investment freedom index

30
SOCIAL FACTORS

Factors Thailand Bangladesh Ukraine Mexico India

Labor force 2017: 67.29 2017: 58.85 2017: 54.49 2017: 60.48 2017: 49.88
2018: 67.59 2018: 58.92 2018: 54.39 2018: 60.7 2018: 49.42
2019: 67.33 2019: 58.99 2019: 54.15 2019: 60.68 2019: 49.29
2020: 67.04 2020: 59 2020: 53.87 2020; 60.66 2020: 49.17

Income Upper middle Lower middle Lower middle Upper middle Lowe middle
category class class class class class

Literacy rate 2013: 93.70% 2017: 2012: 99.97% 2016:94.86% 2011:69.3%

(ages 15 and 2015: 92.87% 72.89% 2017: 94.97% 2015: 71.96%
above) 2018: 93.77% 2918: 2018:95.38% 2018: 74.37%
73.91% 2019: 90% 2020: 69.1%
2019:
74.68%
Education World rank: World rank: World rank: World rank: World rank:
Index 79 133 74 74 35

Working age Approximatel Approximatel Approximatel Approximatel Approximatel

population y 55.96 y 62.7 million y 12.8 million y 83.1 million y 501 million
million
Population 2017: 0.345 2017: 1.07 2017: -0.386 2017: 1.164 2017: 1.063
Growth Rate 2018: 0.315 2018: 1.05 2018: -0.466 2018: 1.126 2018: 1.037
(%) 2019: 0.283 2019: 1.042 2019: -0.533 2019: 1.091 2019: 1.105
2020: 0.250 2020: 1.01 2020: -0.590 2020: 1.060 2020: 0.990
Group 2017: 8.50 2017: 8.70 2017: 6.70 2017: 7.20 2017: 8.30
Grievance 2018: 8.20 2018: 8.40 2018: 6.40 2018: 6.90 2018: 8.30
31
Index 2019: 7.90 2019: 8.00 2019: 6.10 2019: 6.60 2019: 8.00
(0 – Low 2020: 7.60 2020: 8.30 2020: 5.80 2020: 6.30 2020: 8.50
10 – High)
Rank: High Rank: High Rank: Rank: Rank: High
Moderately Moderately
High High
Demographi 2017: 6.4 2017: 7.5 2017: 4.2 2017: 6.1 2017: 7.9
c Pressures 2018: 6.5 2018: 7.8 2018: 3.9 2018: 5.8 2018: 8.0
Index 2019: 6.2 2019: 7.0 2019: 3.6 2019: 5.5 2019: 7.7
(0 – Low 2020: 5.9 2020: 7.1 2020: 3.3 2020: 7.8
10 – High) Rank:
Rank: Rank: High Rank: Low Moderately Rank: High
Moderately High
High
Happiness 2017: 6.42 2017: 4.61 2017: 4.1 2017: 6.58 2017: 4.32
Index 2018: 6.07 2018: 4.50 2018: 4.1 2018: 6.49 2018: 4.19
(0- 2019: 6.01 2019: 4.46 2019: 4.33 2019: 6.59 2019: 4.02
Unhappy 2020: 6.00 2020: 4.83 2020: 4.56 2020: 6.47 2020: 3.57
10- Happy)
Rank: Rank: Rank: Rank: Rank:
Moderate Moderate Moderate Moderate Unhappy
Happiness Unhappiness Unhappiness Happiness
Human 2017: 0.762 2017: 0.609 2017: 0.747 2017: 0.765 2017: 0.643
Developmen 2018: 0.765 2018: 0.614 2018: 0.75 2018: 0.767 2018: 0.647
t Index 2019: 0.765 2019: 0.614 2019: 0.75 2019: 0.767 2019: 0.647
(0-1) 2020: 0.777 2020: 0.632 2020: 0.779 2020: 0.779 2020: 0.645

Rank: 0.767 Rank: 0.617 Rank: 0.767 Rank: 0.769 Rank: 0.646

Country: Social Factors Points

32
Thailand 75 (2nd place)
Bangladesh 50
Ukraine 40
Mexico 115 (1st place)
India 60 (3rd place)

SOCIAL FACTOR ANALYSIS AND PREDICTIONS

1. Thailand

Favorable
High labour force
High literacy rate
Comparatively high education index
Comparatively low group grievance index
Moderate happiness index
Comparatively human development index is high

Unfavorable
Comparatively low working age population
Low population growth rate

2. Bangladesh

Favorable
Comparatively high labour force
Comparatively high literacy rate
Comparatively high working age population
Comparatively high population growth rate
Moderate happiness index
Unfavorable
Low education index
High group grievance index
Human development index is low

33
 3. Ukraine
Favorable
Comparatively high education index
Low population growth rate
Low group grievance index
Moderate happiness index
Comparatively human development index is high

Unfavorable
Low labour force
Low literacy rate
Comparatively low working age population

4. Mexico

Favorable
High labour force
High literacy rate
Comparatively high education index
Comparatively high working age population
High population growth rate
Comparatively low group grievance index
Moderate happiness index
Human development index is high

Unfavorable

34
 5. India

Favorable
High education index
High working age population
Comparatively high population growth rate
Unfavorable
Low labor force
Low literacy rate
High group grievance index
Unhappy index
Human development index is low

35
TECHNOLOGICAL FACTORS

Factors Thailand Bangladesh Ukraine Mexico India

R&D 2017- 40 2017-Not 2017- 45 2017- 33 2017- 67
2018- 39 available 2018- 47 2018- 31 2018- 65
2019- 41 2018-Not 2019- 46 2019- 42 2019- 35
available
2019-Not
available
Information and 2017: 53.2 2017: 39 2017: 55.7 2017: 66.5 2017: 49.20
communication 2018: 55.6 2018: 39.9 2018: 57.7 2018: 68.0 2018: 50.8
technology 2019: 60.8 2019: 53.3 2019: 58 2019: 72.8 2019: 62.5
index 2020: 61.3 2020: 53.5 2020: 58.8 2020: 74.1 2020: 63.3
(0=worst,
100=best) Rank: 79/131 Rank: Rank: 82/131 Rank: 50/131 Rank:
91/131 74/131
Innovation 2017- 24 2017- 23.7 2017-37.6 2017-35.8 2017-35.5
efficiency ratio 2018- 33 2018- 23.1 2018-38.5 2018-35.3 2018-35.2
2019- 38.6 2019- 23.3 2019-37.4 2019-36.1 2019-36.6
2020- 36.7 2020- 20.4 2020-36.3 2020-33.6 2020-35.6

ICTs and 2017: 67.1 2017: 49.5 2017: 47 2017: 66.6 2017: 56.6
business model 2018: 69.3 2018: 49.6 2018: 48.9 2018: 66.6 2018: 55.9
creations (1=not 2019: 67.3 2019: 50.7 2019: 49.1 2019: 67.6 2019: 61.6
at all; 7=to a 2020: 60.3 2020: 42.1 2020: 55.6 2020: 57.6 2020: 59.6
great extent)
Rank:43/125 Rank:108 /125 Rank:58 /125 Rank:53/125 Rank:47/125
Internet 2017- 71 2017- 15 2017- 62 2017- 53 2017- 73
Infrastructure 2018- 72 2018- 15 2018- 62 2018- 56 2018- 77
2019- 77 2019- 12.9 2019- 67 2019- 59 2019- 79
Digital skills 2017:4.38 2017: 3.16 2017: 4.73 2017: 3.83 2017: 4.38
among 2018:4.37 2018: 3.33 2018: 4.43 2018: 3.83 2018: 4.63
population 2019:4.26 2019: 3.55 2019: 4.45 2019: 3.76 2019: 4.43
(0=worst,
100=best)

36
 Global 2017: 37.6 2017: 23.7 2017: 37.6 2017: 35.8 2017: 35.5
Innovation 2018: 38.0 2018: 23.1 2018: 38.5 2018: 35.3 2018: 35.2
index (0=worst, 2019: 38.6 2019: 23.3 2019: 37.4 2019: 36.1 2019: 36.6
100=best)
2020: 36.7 2020: 20.4 2020: 36.3 2020: 33.6 2020: 35.6

Rank: Rank: Rank: Rank: Rank:

44/131 116/131 45/131 55/131 48/131

Country: Technological factors Points

Thailand 60 (1st place)
Bangladesh 0 (3rd place)
Ukraine 45 (2nd place)
Mexico 45 (2nd place0
India 60 (1st place)

India: Their large population of the world makes it perfect for technological advancements and
invention. In general, the current age is shifting towards mechanized and fully automated
processes in all areas, and India is at the forefront of the trend. Energy production and food
production are the main industries.

Mexico: The biggest change Mexico plans to make in terms of technical changes is the
telecommunications part. This is important, as it will help to enter the internet and progress
towards growth. This is the government. It also subsidizes firms that are willing to undertake
R&D projects. In Mexico, though, there is no concrete advantage to the company in terms of
technology.

Thailand: Thailand is becoming a technological advanced region. The government provides a

number of incentives for companies to implement emerging technology. The investment of Thai
firms in innovation and technological infrastructure is also commendable. As a result the nation
is expected to see a spike the e-commerce and similar technological operations in the coming
years.

37
Bangladesh: Bangladesh is developing as a manufacturing country for digital gadgets in the
global technology market. One of the country's electronics conglomerates has already begun to
manufacture gadgets, and several other firms are soon to follow.

Ukraine: The ICT industry remains divided from the rest of the economy, creating questions
about the viability of its development as well as the potentially missed prospects for
productivity-improving the digitization of the real economy. The ICT sector could help the rest
of Ukraine's economy develop faster and its workforce becoming more productive, but only if
this issue is resolved.

TECHNOLOGICAL FACTOR ANALYSIS AND PREDICTIONS

1. Thailand

Favorable
High ICT index
ICTs and business model creations is high
Comparatively internet infrastructure is high
Comparatively digital skills amoung people is high
Global innovation index is high
Unfavorable
Comparatively low innovation effciency ratio

2. Bangladesh

Favorable

Unfavorable
Low ICT index
Comparatively low innovation effciency ratio
ICTs and business model creations is low
Comparatively internet infrastructure is low
Digital skills amoung people is low
Global innovation index is low

38
 3. Ukraine

Favorable
High innovation effciency ratio
Comparatively internet infrastructure is high
Digital skills amoung people is high
Comparatively global innovation index is high
Unfavorable

Low ICT index

ICTs and business model creations is low

4. Mexico

Favorable
High increasment in ICT index
High innovation effciency ratio
ICTs and business model creations is high
Unfavorable
Comparatively internet infrastructure is high
Digital skills amoung people is low
Global innovation index is low

39
 5. India

Favorable
High ICT index
High innovation effciency ratio
ICTs and business model creations is high
Comparatively internet infrastructure is high
Comparatively digital skills amoung people is high
Comparatively global innovation index is high
Unfavorable

40
 ENVIRONMENTAL FACTORS

Factors Thailand Bangladesh Ukraine Mexico India

Carbon 2016- 3.93 tons 2016-0.53 tons 2016-4.49 tons 2016-3.45 tons 2016-1.92 tons
footprint/CO2 2017- 4.03 tons 2017-0.54 tons 2017-4.39 tons 2017-3.93 tons 2017-1.83 tons
emission 2018- 4.06 tons 2018-0.54 tons 2018-4.61 tons 2018-3.79 tons 2018-1.94 tons

Environmental 2020: 45.4 2020: 29.0 2020: 49.5 2020: 52.6 2020: 27.6
performance Rank: Rank: Rank: Rank: Rank:
ranking 70/129 123/129 57/129 49/129 124/129
Access to water 96% 97% 95% 70% 50%
%
Cost of Household:0.128 Household:0.066 Household:0.047 Household:0.083 Household:0.081
electricity (per Business:0.125 Business:0.106 Business:0.080 Business:0.162 Business:0.114
kwh in USD)

Global Climate 2019: 43.17 2019: 23.50 2019: 76.17 2019: 59.50 2019: 16.67
Risk Index
(rank 1 worst) Rank: 34 Rank: 3 Rank: 85 Rank: 54 Rank: 7
Pressures from -Advocacy from -Most NGOs in the -Cooperation with -In Mexico, as -India is cracking
NGOs NGOs has country, whether NGOs elsewhere in Latin down on non-
enhanced big or small, focus demonstrates that America, real governmental
Extensive public on credit services, the state wages declined, the organizations
awareness and derive more of institutions are number of (NGOs) operating
participation in their income from fully committed to households in on its territory,
development fees for services implement the poverty increased, alleging that
projects in than from grants, principle of civil income distribution thousands have
Thailand. rely on salaried society control widened, and misreported their
-Many rather than over the power unemployment foreign funding to
NGOs are involved voluntary staff, structures, which is steadily rose Indian fiscal
in mobilizing keep detailed one of the key (Portes and authorities.
people and financial accounts goals in the Hoffman 2003). As In the past two
campaigning that are externally democratic world. socioeconomic months alone, the
against audited, and hire conditions Home Ministry has
construction middle-class deteriorated cancelled

41
 projects. college educated rapidly, many registrations of
men as managers. engaged in various more than 13,000
forms of NGOs for
mobilization allegedly failing to
(Shefner 2008). file annual tax
Coinciding with returns for three
neoliberalism, years since 2009,
Mexico was according to
experiencing Indian media
democratization reports.
that also created As many as two
new opportunities million home-
for collective grown or
action. NGOs, for international
instance, began to NGOs – many of
emerge in greater which are funded
numbers. by foreign donors
Importantly, this – work across
development was India, largely in
also bolstered by the field of
the position of the development.
UN that this form
of organizing
represented a new
way for
marginalized
groups to have
their voices heard.

Country: Environmental factors Points

Thailand 20

42
Bangladesh 40 (2nd place)
Ukraine 50 (1st place)
Mexico 25 (3rd place)
India 15

ENVIRONMENTAL FACTOR ANALYSIS AND PREDICTIONS

1. Thailand

Favorable
Comparatively environmental performence ranking is high
High in access to water
Comparatively global climate risk index is low

Unfavorable
Carbon footprint/CO2 emission is high
Cost of electricity is high

2. Bangladesh

Favorable
Carbon footprint/CO2 emission is low
High in access to water
Cost of electricity is low
Unfavorable
Environmental performence ranking is low
Global climate risk index is high

3. Ukraine

43
Favorable
Environmental performence ranking is high
High in access to water
Cost of electricity is low
Global climate risk index is low
Unfavorable
Carbon footprint/CO2 emission is high

4. Mexico

Favorable
Comparatively carbon footprint/CO2 emission is low
Comparatively environmental performence ranking is high
Global climate risk index is low
Unfavorable
Comparatively low in access to water
Cost of electricity is high

5. India

Favorable
Comparatively carbon footprint/CO2 emission is low
Low in access to water
Comparatively cost of electricity is low
Unfavorable
Environmental performence ranking is low
Global climate risk index is high

44
 LEGAL FACTORS

Factors Thailand Bangladesh Ukraine Mexico India

Minimum $11.23 $9.45 $22.00 $7.10 $2.80
wage
(daily)

Starting a Time-6 days Time- 20 days Time-7 days Time-8 days Time-18 days
Business
Procedures-5 Procedures-5 Procedures-6 Procedures-8 Procedures-10
Enforcing a 420 days 1442 days 378 days 341 days 1445 days
contract
Rule of Law 2017: 36.3 2017: 19 2017: 16 2017: 25.7 2017: 37.8
index 2018: 44.3 2018: 27.7 2018: 22.9 2018: 30.1 2018: 42
2019: 47.5 2019: 28.6 2019: 27.6 2019: 31.4 2019: 46.5
2020: 47.3 2020: 30 2020: 28 2020: 29.1 2020: 47.3

Rank:63/131 Rank:104/131 Rank:109/131 Rank:106/131 Rank:62/131

Strength of 2017: 7 2017: 5 2017: 8 2017: 10 2017: 8
Legal rights 2018: 7 2018: 5 2018: 8 2018: 10 2018: 9

index (1-12 2019: 7 2019: 5 2019: 8 2019: 10 2019: 9

best)
Business 2015: 4.91 2015: 4.57 2015: 3.59 2015: 4.89 2015: 4.25
impact of 2016: 4.76 2016: 4.53 2016: 3.27 2016: 5.18 2016: 4.58

rules on FDI 2017: 4.98 2017: 4.73 2017: 3.25 2017: 5.10 2017: 4.47

(1-7 best)
Maximum 8 hours per day 8 hours per day 8 hours per day The day shift 8 48 hours in a
working and 48 hours a and 48 hours per and 40m hours hours. Night week 9 hours in
duration week. week. per week. shift- 7 hours 48 a day.
hours a week
Minimum 15 years. 14 years. 16 years. 15 years: 14 years.
employment (Children aged (Restricted
age 15 can work working hours

45
 with consent and the type of
from parents.) work)
Health safety -Ministerial -Under the -Order No. 100 -Workplaces are -The Factories
laws Regulation, amendments of 12 May 2008 subject to three Act, 1948
Ministry of compensation of the State regular types of -The Dock
Labor, on the for work-related Committee for inspection: Workers
prescribing of deaths is Industrial Initial (Safety, Health
criteria and provided after Security, inspections, & Welfare) Act,
method of two years in Occupational Periodic, and 1986
conducting employment, Safety and Verification.
health checkup compared to the Mountain However, under
of employees current three Monitoring, Mexican health
and forwarding years period. establishing and occupational
the results of Workplaces of occupational safety laws,
health check up over 500 safety rules in workplaces are
to labor employers are the also subject to
inspectors, B.E. required to manufacturing special
2547 (A.D. arrange for and of electro- inspections,
2004) cover the cost of insulating which can be
treatment of materials. ordered at any
occupational time for
diseases. imminent
violations.

Copyright -Copyright Act -In Bangladesh, -The unfair and -Covers all - In India,
and patent BE 2537 (1994). the copyright pr non-transparent forms of arts copyrights were
laws(IP Copyright is otection is administration such as music, regulated under
rights) automatically governed by of the system literary, dramatic the Copyright
protected for 50 the Copyright for collective or artistic work. Act, 1957;
years after the Act 2000 copyright Copy right last trademarks
death of a (amended in management for 50 years for under Trade and

46
 known author or 2005) organizations book publishers Merchandise
50 years after and Copyright R (CMOs) that and 100 years Marks Act
publication in ules 2010. As are responsible post mortem and 1958; patents
the case of an per the for collecting the entire life of under Patents
unknown governing acts, and distributing the Author. Act, 1970; and
author. It does the Copyright in royalties to designs under
not need literary, musical, right holders; Designs Act,
registration; dramatic, or (2) widespread 1911.
however, it can artistic work use of
be filed with the continues for the unlicensed
Department of lifetime of the software by
Intellectual author and until Ukrainian
property (DIP). 60 years from government
the following agencies; and
death year. (3) failure to
implement an
effective means
to combat
widespread
online
copyright
infringement.
Discriminatio -The -The State shall -Ukraine's -The Mexican - Equal
n laws Constitution of not discriminate parliament has Political Remuneration
Thailand against any passed a law Constitution sets Act, 1976 -
prohibits any citizen on banning forth that Guarantees
discrimination grounds only of discrimination discrimination is equal pay for
on the grounds religion, race, in the not tolerated, in equal work to
of origin, race, caste, sex or workplace, any men and
language, sex, place of birth. including that circumstance, women. Hindu
age, disability, (2) Women shall based on sexual including but not Succession Act,

47
 physical or have equal orientation. It is limited to race, 1956 -
health condition, rights with men the last of a color, religion, Abolished the
personal status, in all spheres of package of ten gender, national "limited owner"
economic and the State and of laws that had to origin, status of women
social status, public life. be approved for citizenship, age, who owned
religious belief, the European disability, property,
education, or Union to genetic amended in
political views. consider visa- predisposition or 2004 to give
free travel for carrier status, daughters equal
Ukrainians. marital status, inheritance
sexual rights with sons.
orientation,
physical or
mental disability.

Country: Legal factors Points

Thailand 70 (1st place)
Bangladesh 35 (3rd place)
Ukraine 30 (3rd place)
Mexico 70 (1st place)
India 70 (1st place)

LEGAL FACTOR ANALYSIS AND PREDICTIONS

1. Thailand

48
Favorable
Comparatively minimum wage is low
Time duration and steps to start a business is less
Time duration to enforce a contract is comparatively low
High rules of law index
Compartively business impact on rules on FDIs is high
Working duration is comparatively high
Minimum employemnt age comparatively low
Unfavorable
Low stength in legal rights

2. Bangladesh

Favorable
High rules of law index
Compartively business impact on rules on FDIs is high
Working duration is comparatively high
Minimum employemnt age is low

Unfavorable
Minimum wage is high
Time duration and steps to start a business is high
Time duration to enforce a contract is high
Low stength in legal rights

49
 3. Ukraine

Favorable
Time duration and steps to start a business is less
Time duration to enforce a contract is comparatively low
Comparatively high stength in legal rights

Unfavorable
Minimum wage is high
Low rules of law index
Business impact on rules on FDIs is low
Working duration is comparatively low
Minimum employemnt age comparatively high

4. Mexico

Favorable
Comparatively minimum wage is low
Time duration and steps to start a business is less
Time duration to enforce a contract is low
High stength in legal rights
Business impact on rules on FDIs is high
Working duration is comparatively high
Minimum employemnt age comparatively low

Unfavorable
Low rules of law index

50
 5. India

Favorable
Minimum wage is low
High rules of law index
Comparatively high stength in legal rights
Working duration is high
Minimum employemnt age is low
Unfavorable
Time duration and steps to start a business is high
Time duration to enforce a contract is high
Business impact on rules on FDIs is low

51
Selection of The Investment Country

Overall points

Factor Thailand Bangladesh Ukraine Mexico India

Political 120 15 50 90 50
Economical 140 55 50 150 35
Social 75 50 40 115 60
Technological 60 0 45 45 60
Environmental 20 40 50 25 15
Legal 70 35 30 70 70
Total 490 195 265 495 290

Based on the general environmental analysis Thailand ranks 1st place with the highest score of
490 while 2nd places are occupied by Mexico with a score of 495 and India with a score of
290 respectively.

52
 GAP ANALYSIS & COMFORT ZONES

Below analysis provides an overview of the GAP analysis using the benchmarking range as top
and lowest values of the existing countries to find the most suitable expansion out of the 5
potential expansions namely, Thailand, Bangladesh, Ukraine, Mexico, India

Indicators Overall range

(3 existing Thailand Bangladesh Ukraine Mexico India Best
countries) Country for
specific
indicator
POLITICAL
FACTORS
Political (-0.11)- (- -0.54 -0.92 -1.52 -0.71 -0.7 Mexico
stability index 0.23)
(-2.5 week,2.5
strong)

Political 36-51 36 26 33 31 40 Mexico

Corruption
Perceptions
Index
100 – No
Corruption

Expropriation 2-4 4 5 4 3 3 Mexico

risk index
(1=low, 7=high)
Fragile state 57.6- 81.8 70.8 85.7 69.1 67.2 75.3 Mexico

53
index
(0 (low) - 120
(high))
Short term 1- 4 2 3 5 2 2 Mexico
Political risk
index
1 (low)
7 (high)

Medium/long- 3-5 3 4.8 7 3 3 Mexico

term political
risk (1=low,
7=high)
Ease of doing 12 - 99 21 168 64 60 63 Mexico
business (1-20
ranking) =good
Corporate tax 20% - 28% 20% 25% 18% 30% 30% Thailand
rate

Trade openness 52% - 210% 110% 36.7% 90.1% 77.9% 39.55% Mexico

VAT 6% - 12% 7% 15% 20% 16% 18% Thailand

Government -0.11- 0.1 0.36 -0.74 -0.3 -0.16 0.17 Thailand

effectiveness

ECONOMIC
FACTORS

GDP per capita $2,700 - $ $7,800 $1,855 $3,659 $9,946 $2,099 Thailand
in current US 11,500
dollar

FDI (USD $758 - 4 1.6 49 216 49 Mexico

billions) $16,120

Economic freedom 57% - 75% 69.4 56.4 54.9 66 56 Mexico

54
Inflation rate (% 0.7%- 3.5% -0.43% 5.7% 3.2% 3.4% 4.9% Thailand
of CPI)

Unemployment 2% - 4.5% 0,8 4.15 8.93 3.65 6.41 Mexico

Rates (%)
Exports % of 23% - 106% 59.76 15.32 41.17 38.83 18.41 Thailand
GDP

FDI % of GDP 0.9% - 6.15% 1.1 0.6 3.8 2.3 1.8 Ukraine

Business 66% - 88% 83 52 61 67 66 Mexico

Freedom Index (0
-100

Investment 40% - 60% 55 45 35 75 40 Thailand

Freedom Index
(%)

Quality of 37 - 46 41 29 36 41 46 Thailand
Overall
Infrastructure
Index
(1=best)

SOCIAL
FACTORS

Labor force 58% - 82% 67.04 59 53.87 60.66 49.17 Thailand

Literacy rate 91% - 95% 93.77 74.68 99.97 90 69.1 Thailand
(ages 15 and
above)
Population 0.6% - 1.3% 0.25 1.01 -0.59 1.60 0.99 Bangladesh
Growth Rate
(%)

Group 5.5 – 9.1 7.9 8 6.1 6.6 8.5 Mexico

Grievance
Index
(0 – Low
10 – High)

55
Demographic 4.4 – 5.7 5.9 7.1 3.3 5.5 7.8 Mexico
Pressures
Index
(0 – Low
10 – High)

Happiness 4-6 6 4.83 4.56 6.47 3.57 Bangladesh

Index
(0- Unhappy
10- Happy)

Human 0.7 – 0.8 0.77 0.63 0.77 0.77 0.64 India

Development
Index
(0-1)

TECHNOLO
GICAL
FACTORS

Information and 53 - 79 61.3 53.5 58.8 74.1 63.3 India

communication
technology
index
(0=worst,
100=best)
ICTs and 56 - 74 60.3 42.1 55.6 57.6 59.6 Thailand
business model
creations (1=not
at all; 7=to a
great extent)
Internet 115 - 141 77 12.9 67 59 79 India
Infrastructure
Digital skills 3-6 4.26 3.55 4.45 3.76 4.43 India
among
population
(0=worst,

56
100=best)
Global 23 - 42 44 116 45 55 48 Thailand
Innovation
index (0=worst,
100=best)
ENVIRONM
ENTAL
FACTORS
Carbon 1-8 4.06 0.54 4.61 3.79 1.94 India
footprint/CO2
emission(metric
ton per capita)

Environmental 33 - 47 45.4 29 49.5 59.69 27.6 Thailand

performance
ranking
Cost of $0.6 - $0.8 0.125 0.106 0.80 0.162 0.114 Ukraine
electricity (per
kwh in USD)

LEGAL
FACTORS
Minimum $1.3 - $2.3 $11.23 $9.45 $22 $7.1 $2.8 India
wage
(daily)

Strength of 2 -8 7 5 8 10 9 Ukraine
Legal rights
index (1-12
best)
Maximum 8 hrs- 9hrs 8 8 8 8 8 Mexico
working
duration (hrs.
daily)

Minimum 14 - 15 15 14 16 15 14 India
employment
age

57
SWOT ANALYSIS FOR THE SELECTED COUNTRY

 Proximity to US and UK markets which ultimately result in

o Reduction of transportation cost & time
o Quicker responding time
Strengths o Reduced inventory management cost

 Textile and Apparel manufacturing is the fourth largest sector

contributing to the GDP
 Most stable currency in the region

 Weak rule of law and lack of good governance remain key

challenges for Mexican corporates seeking better conditions
Weaknesses from foreign lenders and investors.

 FDI welcoming government policies especially for apparel

manufacturing
 Partnering up with local manufactures and create tax reliefs
Opportunities  Advantages created by international treaties and trade
agreements (NAFTA)

58
  Tension from USA due to close economic and political
bilateral relationships
 Systemic corruption adds hidden costs and frustrates
Threats foreigners.

59
Section 2

This special section is consisted with expert advice on creating resilient for the global pandemic
in business perspective. Expert advice has provided under two main aspects:

1. General aspect
2. Industry specific aspect

General Aspect

Creating resilience for Covid-19 has become a momentum aspect to all businesses due to its
devastating impact on supply chain, cash flow and all the business functions [ CITATION
USE20 \l 1033 ] . However, measuring and managing resilience is difficult mainly due to
[ CITATION Mar20 \l 1033 ]:

 Lack of multi-time-scale perspective planning where firms main focus is on maximizing

short-term shareholder wealth but resilient requires a boarder spectrum of timescale.
 The present corporate capitalism model promotes individual optimization of the company
simplifying management and accountability while masking the interdependence in
between stakeholders. In contrast Resilience is an interconnected/ interdependence
system approach where it requires support from all the functions of the firm.
 Focus of creation and execution of plans are mainly based on clear, unchanging, and
predictable relationships while, resilience deals with unpredictable, improbable,
changeable complications in business environment

6 principles of building long-lasting resilient enterprises

These six principles provide guidance for creating long-lasting sustainable resilient system
for businesses.

Principle Description
Redundancy This strategy helps to minimize the effect of unexpected shocks
however at expense of short-term efficiency.

60
 Creation method: Duplication of elements (Create same product in
multiple locations/factories)
Diversity This refers to the diversity of the workforce which helps to ensure
mitigation of catastrophic failure in the system gaining through
sacrificing the efficiencies from standardization.

Creation method: Hiring people different backgrounds with

diversified cognitive profiles which enables innovation and creativity
within the firm.
Modularity This helps firms to run operations smoothly allowing induvial failure
without collapsing the entire system.

Creation method: Through tightly integrated organizational design by

dividing into smaller chunks with well-defined interfaces which
ultimately help with rapid rewiring during a crisis
Adaptability This refers to the ability to progress through trial and error.

Creation method: Through designing of processes and structures

which promotes flexibility and learning rather rigid tight control.
Prudence This refers to the precautionary measure that company has during
plausible circumstances.

Creation method: Through scenario planning, analyzing system

vulnerability, war games, monitoring early warning signs
Embeddedness Since all the functions are embedded in supply chains, business
ecosystems, economies, societies and natural ecosystems, firm’s goal
and activities must be aligned with these broader systems for long-
term success.

Apart from above structural modifications, a firm can deploy three other strategies in creating
resilient.

1. Migration strategy Shifting business portfolio across products,

61
 geographies, channels, or business model to
minimize adversity. This requires more decisive
reallocation of resources where sufficiency is a
key.(such as; allocation of sufficient capital with
sufficient speed)
2. Environmental shaping Business environment of an established market
is pre-determined to a new entry. But a pioneer
in the emerging opportunity can outline the
environment. Through visualization of possible
realities in dynamic environments and after
realizing them via shaping and persuasion firms
can mitigate adverse shocks.
3. Collaboration Collaboration with other players especially in
digital platforms can increase the collective
resilience accessing new capabilities and
increased flexibility which also impacted in
reducing the fixed cost of entry due to shared
assets.

These three strategies not only help in creating resilient but take advantage of creation and
exploitation of new opportunities[ CITATION Mar201 \l 1033 ].

Employing the mentioned principles and strategies business can have multiple advantages.
Mainly 4 types of benefits can be seen [ CITATION Mar20 \l 1033 ].

Figure 1 Assessing companies' relative resilience [ CITATION

Mar201 \l 1033 ]

62
 1. Anticipation benefit: The alibility to
identify threats quicker. However,
this can not to demonstrated in short-
term performance but via other
signals specially when firms
articulating its resilience plan.
2. Impact benefit: This is the ability to
better resist or combat the initial
shock which can be attained through
well-preparedness and more-agile
response plan.
3. Recovery speed benefit: This is
benefit attained by recognizing and
implementing the adaptations
effectively which needed to rebound
from the shock quicker.
4. Outcome benefit: This refers to the
increased strengths for new post-
shock environment.

Covid-19 has not only created the threats to entire business ecosystem but seeds of opportunities
for change [ CITATION Mar20 \l 1033 ].

Industry Specific Aspect

63
 Although the garment industry faced a major disrupt from the Covid -19 pandemic globally
industry specific preparedness can improve the long-term impact on to the industry
[ CITATION Int20 \l 1033 ].

Industry specific recommendations are provided under 3 major phases [ CITATION

Wor201 \l 1033 ].

1) Ensuring Business Continuity and Employee protection(Immediate actions)[ CITATION

Wor201 \l 1033 ]

Employee protection measures:

 Manadting the use of Covid -19 protective workwear

64
  Employee support programs providing on mental health advice, offering voluntary
unpaid leaves
 Impose mandatory restrictions on employee contact in the workplace

Apart from the mentioned measures, there are several other measures which helps to ensure
the busines continuity

 Establish cross-functional control towers

 Increase safety stocks and shift inventories
 Proactive management of costs and cash to safeguard the liquidity
 Pivot freight models
 Provide customer support programs
 Prepare for bounce back
 Fast adaptation to new demand to meet up customer expectations

Supply chain risk mitigation measures:

 Supply support programs providing

o risk analysis assistance
o guaranteeing purchase of supply
o Providing advance payment to ease the pressure

2) Preparing for recovery and increasing resilience (acceleration initiatives)[ CITATION

Wor201 \l 1033 ]
 Adopting the overall supply chain set-up by carefully managing interdependent levers
such as dual sourcing, complexity reduction and localizing
 Doubling down on investments in advanced manufacturing technologies that were
attributed an essential role in ensuring a quick reaction to the crisis
 Adjusting the operating model to allow for a more flexible and decentralized
manufacturing organization with a consistent risk management system in place
 Redefining external relationships and capturing new opportunities from cross- industry
collaboration models

65
  Increase collaboration with suppliers
 Adopt strategic partnerships with peers and across industries
 Seek M&A opportunities

 Reviewing and challenging the product portfolio to reduce complexity and refocus on key
strategic directions

3) Adapting to potential changes (long-term adaptation)[ CITATION Wor201 \l 1033 ]

As a result, five consistent important areas emerged which leaders need to consider in order to
prepare for long-term business success:

66
CONCLUSION

As a representative firm, the crew trust that expanding a positive business, but massive or small
the funding is a massive step when wearing an enterprise ahead. moving production to Mexico
will greatly benefit the MNC in spite of the positive risks that they may face whilst having their
manufacturing in the united states. The MNC at play right here which concentrates on healthcare
clothing would gain immensely via putting in place in Mexico. Mexico is the contemporary best
funding destination out of the five ability economies such as Thailand, Bangladesh, Ukraine and
India as analyzed through PESTEL factors. But this look at mainly targeted on the PESTEL
elements and Gap Analysis and the expert advises for creating resilience for COVID 19. Also,
the since Latin America seems to be a region attracting more Foreign Direct Investment and
Mexico us deemed to be potential place that attract international retail brands, on which can be
out of the firm’s manage and are exceptionally dynamic, consequently it's far essential to be up
to date about these external elements and alter therefore. However, from a current viewpoint it is
ideal to head beforehand with Mexico. There may be danger concerned in each thing of a
business and it's far believing that this hazard is worth taking.

67
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