Textile Industry Trends in the Global Economy
I. Executive Summary
The objective of this paper is to examine how the development of a textile industry contributes to economic growth in the global economy. Because textile manufacturing is a labor-intensive industry, developing countries are able to utilize their labor surplus to enter the market and begin the process of building an industrial economy. Emerging economies then look outward to develop an export strategy based on their comparative advantage in labor costs.
Textile production and consumption is an increasingly global affair as production continues to shift to developing countries. Developing countries have seen an explosion in the growth of their textile exports, and for many countries textiles are a significant portion of their total exports. In response to increasing competition from low-value imports from developing countries, industry leaders in developed countries have made significant capital investments in order to increase productivity and move into advanced market sectors.
There are several trade agreements in place that impact world textile trade. The African Growth and Opportunities Act, Andean Trade Preference Act, and Trade Promotion Act are each designed to liberalize textile trade and provide equal market access to both developing and developed countries. Despite the potential economic and social benefits, the effectiveness of these trade policies is limited by special interest politics in the developed world. The presence of a political economy in developed countries can affect both the formation of and the adherence to international trade agreements; industry leaders can still appeal to the World Trade Organization or their Trade...
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When America's cotton is sent to China, it is made into T-shirts in the sweatshops of China by laborers working 12-hour days and being paid subsistence wages. When the finished T-shirts re-enter the U.S., they are protected by the government through subsidies, tariffs, taxes, and protectionist policies that ensure that these foreign products will not provide too much competition to American-made shirts. Government regulations control how many T-shirt can be imported from various countrie...
The strengths of the book come from its’ accessibility. The book is easy to follow and provides readers with a great deal of information about the production of mass-manufactured clothing. As well as brings awareness to its’ many issues which we inadvertently take part in when we purchase such products. The book is well written and thoroughly researched but does have its’ share of weaknesses.
the case in the textile industry, having before created most of the textiles in smaller quantities in the home
Yeh, Wen-Hsin. Becoming Chinese: Passages to Modernity and Beyond. Berkeley: University of California Press, 2000. Print
Coates, B., Horton, D., & McNamee, L. (2014, January 1). CHINA: PROSPECTS FOR EXPORT-DRIVEN GROWTH. Economic Roundup Issue 4. Department of the Treasury (Australia).
A report compiled by the U.S Financial Crises Inquiry Commission shows that the infamous global crises could have been avoided. It pointed out that failure in different financial institutions including the Federal Reserve accelerated the crises. Lehman brothers; one of the three largest investments banks in the United States has been cited in the financial crises in 2007. The bank went bankrupt and it had to be sold in September 2008 (Currie, 2010). The other two banks Morgan Stanley and Goldman Sachs had to become commercial banks where more regulation was done. The collapse of large and significant financial institutions like the Lehman Brothers propagated the economic crises. Investors withdrew over $150 billion from the money funds in the USA in two days after the collapse of the Lehman Brothers. This caused the money markets to get unstable thereby nee...
Furthermore, cotton is a huge traded agricultural product. Approximately 170 nations were engaged in the export or import of cotton. By the export of textiles, cotton increases countries economic growth. Producing cotton requires a body of labors when there is a demand. In addition technology innovations increased productivity which lowered cotton prices and increased demand for cotton. Moreover, the United states is the largest cotton exporter, thanks to the economic system which provides incentives to the United States labor. Therefore, the economic system is the most important factor in increasing cotton production. In addition, the four factors that helped the cotton industry in the United States to achieve economic success are labor, technology, Lubbock city, and the economic system.
While the price of cotton textiles decreased by 90%, the output had grown to cover the demand at affordable prices. Now, cotton will be gotten from Brazil, Egypt, southern United Sates and all this meant a...
Everyday across the world, people wake up in the morning and get ready for the day, they look in their closet and think for a second about what to wear, but has anyone ever stopped to think about where their t-shirt came from. The author of “The Travels of a T-Shirt in the Global Economy” Pietra Rivoli has pondered over that question and in order to thoroughly answer it, she traveled across the world to track down where her t-shirt came from and the life it had before it came into her hands at a local convenient store. In this well thought out book, she discusses a wide range of information regarding the production of cotton which resulted to the teaching of economics and key terms associated with it.
It can also be argued that the political activities of Chairman Mao’s Communist China were more of a continuation of traditional Imperial China, based heavily in Confucian values, than a new type of Marxist-Leninist China, based on the Soviet Union as an archetype. While it is unquestionable that a Marxist-Leninist political structure was present in China during this time, Confucian values remained to be reinforced through rituals and were a fundamental part of the Chinese Communist ...
As soon as the shift to a free trade regime appeared along with the competition with countries such as China and Indonesia the quick collapse of Bangladesh’s textile industry has been predicted. However, the opposite occurred. We can highlight three major reasons to explain what happened:
The Asian Financial Crisis which exposed the corporate governance weaknesses was a wake-up call for all the policymakers, standard setters as well as the companies (OECD, 2014). The parties that involved and affected from the crisis started to realize the importance of having strong corporate governance practices in their countries. Consequently, the Asian economies along with the OECD established the Asian Roundtable on Corporate Governance in 1999, in order to support the enhancement of corporate governance rules and practices (OECD, 2014).
The selling of secondhand clothing or ‘oboni wawu ’ in Ghana has only negative affected the country. Employment in textile and clothing has fallen by 80% between 1975 and the 2000s (Rodgers,2015). It seems strange that the selling of secondhand clothing can have such an effect on a country 's economy. Here in the U.S, everyone has bought secondhand clothing but at the same time the buying for the clothing hasn’t put a dent in the economy. It is almost parallel to what happened in the past, jobs disappeared in order find cheaper ways of making things. In the US, many clothing factories shut down or moved overseas leaving many unemployed and in Africa markets are selling used clothing in the effect many jobs have been lost in the clothing industry. The biggest difference, the clothing that we buy is brand new and no one has worn it whereas in Africa, they are buying the ratty, unwanted used clothing. "The long-term effect is that countries such as Malawi or Mozambique or Zambia can 't really establish or protect their own clothing industries if they are importing second-hand goods," says Andrew Brooks from King’s College (Kermeliotis,2013). The problem is there isn’t a way for the companies to compete with the second-hand trade especially if they come in at such a high volume and are sold cheaper. In order to protect their nation’s textile industries many African countries have banned the import of second hand clothing (Kermeliotis,2013). The clothing industries aren’t able to compete with the used clothing market because it is sold for
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1. What is the difference between a. and a. From an economic perspective, is the shift to a free trade regime in the textile industry good for Bangladesh? The shift to a free trade regime in the textile industry was good for Bangladesh. Bangladesh prospered when other economies weren't doing so well. The textile industry greatly increased, causing it to become a major reason as to why the economy has continued to increase.