International Sourcing 6

methods or tactics involved in managing an organization, business, state or government

• Private ownership of property
• -income from operations accrue to the owners
• -free competition for economic gain
• -profit motive is basic to economic life

• -Resources are cooperatively or state owned
• -Trade is often done between states or governments

• 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

government purchasing products to reduce the supply and thereby drive the price higher

selling the product in another country at a price less than it is sold domestically or less than the cost to produce

• -establish or maintain market share
• -dispose of excess inventory
• -selling government production from socialistic or communistic countries

• -documents trade data
• -assist firms with exports
• -updates the status of trade agreements

• -represent their membership with employers
• -employ lobbyist to convey their interests to policy makers and the administration

• -non-profit organizations formed to serve their membership
• -similar business interests
• -provide services (industry research, publications, seminars, trade shows)
• -larger ones employ lobbyists

• -Domestic interests
• -International interests
• -Global Interests
• -Multinational Interests
• -Transitional Interests

protect domestic manufacturing, focus on domestic suppliers

source abroad but see their overseas activities as supporting their domestic company

source products worldwide but sell market their products worldwide as a "national brand"

source and sell their products to meet in each worldwide market including their domestic market

see their goal as responsive to local needs worldwide and respond to needs

• -high tariffs
• -protectionism

multilateral agreements were seen as a way to resolve trade & financial problems (GATT in 1946)

average tariffs reduced by 36% and the use of other non tariff barriers began

• -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

• -MFA, quota system, effectively rising the value of imports
• -opening plants in foreign countries
• -quota rents became a reality
• -guaranteed access levels (GALS)

• -GATT became WTO
• -NAFTA
• -apparel and textile manufacturers abandons protectionism, joined retailers for lower costs
• -brand licensing is important
• -price became dominate in retailing

• -global marketing and sourcing increased, small firms failed
• -MFA phased out
• -demand for domestic textiles decreased
• -only 10% of apparel sales are domestically made

• -Europe and European Union
• -The Americas and Caribbean
• -Asia and Oceania
• -Middle East and Africa

• -western Europe are the most developed countries
• -eastern Europe constitutes more
• -EU includes 25 countries

• -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

• -China, India, island countries
• -Pakistan is the largest exporter of cotton & cotton goods
• -India 2nd largest population

• -Politically volatile
• -Middle east is a low cost supplier
• -Africa has become a significant producer to global trade in the northern most regions