-
Politics
methods or tactics involved in managing an organization, business, state or government
-
Capitalism
- Private ownership of property
- -income from operations accrue to the owners
- -free competition for economic gain
- -profit motive is basic to economic life
-
Communism or Socialism
- -Resources are cooperatively or state owned
- -Trade is often done between states or governments
-
Subsidies
- payments made from a government to a company to permit the company:
- -sell its products at a lower price domestically
- -sold internationally below the market price
-
Price Support Programs
government purchasing products to reduce the supply and thereby drive the price higher
-
Dumping
selling the product in another country at a price less than it is sold domestically or less than the cost to produce
-
Why would a country dump products?
- -establish or maintain market share
- -dispose of excess inventory
- -selling government production from socialistic or communistic countries
-
Office of Textiles and Apparel (OTEXA)
- -documents trade data
- -assist firms with exports
- -updates the status of trade agreements
-
Labor Unions
- -represent their membership with employers
- -employ lobbyist to convey their interests to policy makers and the administration
-
Trade Associations
- -non-profit organizations formed to serve their membership
- -similar business interests
- -provide services (industry research, publications, seminars, trade shows)
- -larger ones employ lobbyists
-
Five classifications of political perspectives
- -Domestic interests
- -International interests
- -Global Interests
- -Multinational Interests
- -Transitional Interests
-
Domestic Interests
protect domestic manufacturing, focus on domestic suppliers
-
International Interests
source abroad but see their overseas activities as supporting their domestic company
-
Global Interests
source products worldwide but sell market their products worldwide as a "national brand"
-
Multinational Interests
source and sell their products to meet in each worldwide market including their domestic market
-
Transitional interests
see their goal as responsive to local needs worldwide and respond to needs
-
1930's
- -high tariffs
- -protectionism
-
1940's
multilateral agreements were seen as a way to resolve trade & financial problems (GATT in 1946)
-
1960's
average tariffs reduced by 36% and the use of other non tariff barriers began
-
1970's
- -protectionism began to rise again
- -free trade and high employment clashes
- -US had largest apparel employment
- -retailers began to bypass manufactures & therefore supported free trade
-
1980's
- -MFA, quota system, effectively rising the value of imports
- -opening plants in foreign countries
- -quota rents became a reality
- -guaranteed access levels (GALS)
-
1990's
- -GATT became WTO
- -NAFTA
- -apparel and textile manufacturers abandons protectionism, joined retailers for lower costs
- -brand licensing is important
- -price became dominate in retailing
-
2000's
- -global marketing and sourcing increased, small firms failed
- -MFA phased out
- -demand for domestic textiles decreased
- -only 10% of apparel sales are domestically made
-
Four regions that form trade blocks
- -Europe and European Union
- -The Americas and Caribbean
- -Asia and Oceania
- -Middle East and Africa
-
Europe and European Union
- -western Europe are the most developed countries
- -eastern Europe constitutes more
- -EU includes 25 countries
-
The Americas and Caribbean Basin
- -Central America (7), North America (3), South America (13) and West Indies (13)
- -NAFTA 1994
- -CAFTA Central American Free Trade Agreement
- -FTAA Free Trade Area of the Americas
-
Asia and Oceania
- -China, India, island countries
- -Pakistan is the largest exporter of cotton & cotton goods
- -India 2nd largest population
-
Middle East and Africa
- -Politically volatile
- -Middle east is a low cost supplier
- -Africa has become a significant producer to global trade in the northern most regions
|
|