Global Ambassador Proposal: Philippines Davao Denim

1. Global Ambassador Proposal: PhilippinesDavao Denim Michele Crow Davondra Jones Saima Khan Jordan Mills Jing Nourse Brenda Ruiz

2. Location • The location of The Philippines is right under China and above Australia, next to Indonesia as well. • In proximity to the United States, The Philippines is about 8,113 miles away, equivalent to 13,056 kilometers or 7,050 nautical miles. • The population of The Philippines is over 94 million as of 2011, making it the world’s 12th most populous nation.

3. Political • The Philippines current political environment resembles that of the U.S. model of democracy. • One of the highest laws of the land in the Philippines is the Constitution • The political government is broken into three branches of government, The Executive, Legislative, and the Judicial • The Philippines is a unitary republic

4. Culture Environments • Today some of the isolated tribes are the only people whose culture remains unadulterated by earlier Muslim and later Spanish and American influences • The Philippines is the only Christian country in Asia, • There are over eighty dialects in total, Tagalog was declared the national language in 1936 • The Filipino cuisine is a mixture of Chinese, Malay, and Spanish

5. Economic Environments • The Philippines is a developing country with a diversified economy. • Mining investment has been on the rise • The global system is undergoing a transition from fossil fuels to renewable energy • Income inequality remains an issue, regional development is uneven, and China and India have emerged as major economic competitors • There is a forecasted decline in economic growth, increased inflation, and a deteriorating trade deficit

6. Legal Environments • The legal government consists of the three branches: Executive, Legislative, and Judiciary. • The President is the head of the executive branch w/ a term of office is six years. • In the Legislative branch, which has the authority to make, alter or repeal laws, is the congress • The Philippines is a multi-party system

7. Major Fibers Produced • Abaca that is made from bananas is the countries biggest fiber and is known worldwide as Manila hemp, • Abaca is used for cordage, paper, tea bags, meat casing, filters, stiff clothing, footwear, and many others • Pina is another major fiber of the Philippines and it is extracted from the leaves of the pineapple plant • Coco fiber has been a part of the Philippines social enterprise for the past ten years • Maguey is a fiber of the abaca plant, was brought by the Spaniards and does not require fertile soil to grow, • It is used for the making of ropes and of carpet.

8. Workforce • Higher education is a priority, with 94.5% as the countries literacy rate • English is taught in all schools making it the third largest English speaking country • Main Employment: Project employment, seasonal employment, casual employment, term or fixed employment, and probationary employment • Employees have to work eight hours per day or 48 hours per week and resting periods are counted as hours worked. • Meal breaks are an hour long, work night shifts and receive an additional 25% benefit from their regular wage if they work overtime

9. Quality/reliability/time to market • Life expectancy is 71.94 years • Males tend to live to 68.99 years and females live to 75.03 years • The Philippines is one of the largest Southeast Asian countries in the world. • Reliable country for their exports, imports, and trading agreement. • The top items they imported were Electric Machinery, Machinery, Knit Apparel, Woven Apparel, and Fats and Oils (coconut oil).

10. Costs • Manpower costs relate to employment relation and labor principles • The industrial sector is focused mainly in the metropolitan area • Gas and fuel cost, electricity rates, water rates, cell phones, and Internet use keep increasing.

11. Trade Agreements • The United States has a bilateral Trade and Investment Framework Agreement with the Philippines. • TIFA- an agreement to cooperate on stopping illegal transshipments of textiles and apparel • The WHO Agreement on Textiles and Clothing (ATC)- the U.S. negotiated market access with several developing countries (including the Philippines),which are major exporters to the US market • ASEAN (Association of Southeast Asian Nations) and a participant in the ASEAN Free Trade Area (AFTA) • ASEAN Plus Three (with China, Japan, and the Republic of Korea), the ASEAN Regional Forum (ARF), the ASEAN Defense Ministers Meeting (ADMM), the East Asia Summit (EAS), and the Asia-Pacific Economic Cooperation (APEC) forum

12. Other things you should know! • Graphic designs and street-wear inspired looks are common • Designers like Monique Lhuillier are leading the representation of Filipino designers • major supplier of children’s, men’s and ladies’ wear • known for its complicated styles and intricate embroidery • Polo Ralph Lauren, Ann Taylor, GAP, Anne Klein, Liz Claiborne and DKNY select the country for manufacturing and production • The jewelry market in the Philippines is an important industry for the country as well and is currently thriving. • The denim market is definitely a luxurious one in the Philippines as Freego’s groundbreaking jean innovations continue to set the benchmark for the top-of-the-line denims • American actress Lindsey Lohan is now the face of Jag Jeans, one of the Philippines’ leading denim brands

13. Bibliography Abaca. (n.d.). In Fiber industry development authority. Retrieved from, http://fida.da.gov.ph/Templates/abaca_history.htm Anthology of denim. (2011). The Philippine Star, Retrieved from://www.philstar.com/Article.aspx?articleId=712695 Background note: Philippines. (2012). U.S. Department of State. Retrieved from http://www.state.gov/r/pa/ei/bgn/2794.htm Central Intelligence Agency. (2012) Philippines. Retrieved from The World Factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html Compare Infobase Limited. (n.d.) Political System of the Philippines. Retrieved from http://www.123independenceday.com/philippines/political-system.html Cost of Doing Business. (2005). Board of Investments. Retrieved from http://www.boi.gov.ph/costs.html Cotton Textile and Apparel Products in Philippines. (2003). Retrieved February 20, 2012, from http://www.fas.usda.gov/mos/em-markets/philippinescotton.html Distance from United States to the Phillippines. (2012). In distancefromto.net. Retrieved from http://www.distancefromto.net/distance-from/United+States/to/Philippines

14. Bibliography (cont.) Filipino fashion entrepreneurs go global. (2009, August). Good News Pilipinas. Retrieved from http://goodnewspilipinas.com/2009/08/09/filipino-fashion-entrepreneurs-go-global It's in the jeans. (2011). The Philippine Star, Retrieved from http://www.philstar.com/Article.aspx?articleId=741213 Krupnick, E. (2011). Lindsay Lohan lands jag jeans campaign . Huffington Post, Retrieved from http://www.huffingtonpost.com/2011/12/23/lindsay-lohan-jag-jeans_n_1167523.html Lighthouse Diving Centers. (n.d.) Philippines Culture and Environment. Retrieved from http://lighthousediving.com/PhilippinesInfoCulture.htm Maguey. (n.d.). In Fiber industry develpemnt authority. Retrieved from http://fida.da.gov.ph/Templates/maguey_homepage.html Maniego, Pete and Weischerer, Lutz. (2011). The Right Mix: The Philippines Achieving its Renewable Energy Goals. Retrieved from http://insights.wri.org/news/2011/07/right-mix- philippines-achieving-its-renewable-energy-goals Market Philippines. (2012). Market Philippines Inc. Retrieved from http://www.marketphilippines.com.ph/index.cfm?action=services.wpAboutMa Philippines. (n.d.). Retrieved from http://www.ustr.gov/countries-regions/southeast-asia-pacific/philippines Philippines business culture and workforce. (2012). In Philippines Overview. Retrieved from http://www.kittelsoncarpo.com/philippines-workforce

15. Bibliography (cont.) Phillipine Fashion Week (2011). Retrieved from http://philippinefashionweeklive.com/home/2011/spring-summer/ Philippines firm innovates abaca denim fibre. (2012). In Fibre2Fashion, Retrieved from http://www.fibre2fashion.com/news/textiles-company- news/newsdetails.aspx?news_id=10714 Philippines. (n.d.). Office of the United States Trade Representative. Retrieved from http://www.ustr.gov/countries-regions/southeast-asia-pacific/philippines Philippines sourcing report: Fashion jewelry. (2009, April). Global Sources. Retrieved from http://garmentsources.com/china-sourcing-reports/philippines-fashion-jewelry/ Philippines. (2012). In U.S. chamber of commerce. Retrieved from, http://www.uschamber.com/international/asia/southeastasia/philippines Pina. (n.d.). In Fiber industry development authority. Retrieved from http://fida.da.gov.ph/Templates/piña_homepage.htm The Philippines. (n.d.). Retrieved from http://www.ustr.gov/sites/default/files/uploads/reports/2010/NTE/2010_NTE_Philippines_final.pdf White, Thomas. (2012). Philippines: Uniquely Rising from Its Past. Retrieved from http://www.thomaswhite.com/explore-the-world/philippines.aspx Winther, C. & Borgesen, V. (n.d). Global sourcing and technological benefits: Pre-conditions for four Philippine apparel firms to derive technological benefits from MNEs global sourcing linkages. Retrieved from www.impgroup.org/uploads/papers/4777.pdf