CONCLUSION
As Gap Inc. continues to expand into the foreign markets,
it should consider several options to reduce costs
and thereby increase profit. First, because Gap Inc. does
not produce or procure merchandise in any of the foreign
markets it is currently in, establishing free-trade
zones in those countries might help increase profits by
temporarily reducing duty and VAT costs, and no duties
would be paid on extra merchandise. Second, attention
should be paid to centralizing advertising to reduce cost.
Third, the problems associated with sourcing from so
many different regions should be considered and ways
found to correct them. Finally, Gap Inc. should seek ways
to take advantage of the many free-trade agreements
that recently have been signed.