CTD 447 Quiz

which term is used to describe the constant migration of textiles and apparel production to countries with lower labor costs

"race to the bottom"

what are the common characteristics of the four major trading blocs (europe & EU, americas & caribbean, asia & oceania, middle east & africa)?

1. a combination of developed and developing countries. 2. free trade practices within the area.

what are the strategies to keep US textile and apparel industry stay competitive?

1. closing outmoded and inefficient plants. 2. restructuring through acquisitions, consolidations, and mergers. 3. investments in technology. 4. efforts to improve productivity levels. 5. total quality management. 6. developing a greater sensitivity to market needs. 7. closer working relationships within soft goods chain. 8. concentrating on market segments in which US has greatest advantages. 9. shortening response time. 10. promoting domestic products. 11. influencing public policy.

what are the advantages of Turkey's textiles and apparel industry?

1. domestic supply of textiles and cotton 2. proximity to the EU market - fast fashion. 3. foreign direct investment from US textile and apparel firms.

what is the purpose of the european union?

1. expand cooperation regarding trade, social issues, foreign policy, security, defense, and judicial issues. 2. implement a single currency (Euro) for EU members. 3. create a homogenous trade area.

understand advantage of the five countries' textiles and apparel industry (germany, great britain, italy, france, and spain) / role of WESTERN EUROPE

1. fashion leaders and the centers of merchandising, creative design, technical design, and wholesale marketing. 2. participate in high value and niche markets. 3. improve competitiveness through vertical and horizontal integration.

which countries are members of EU and how many member states does it currently have?

28 - austria, belgium, denmark, finland, france, germany, greece, ireland, italy, luxembourg, the netherlands, portugal, spain, sweden, united kingdom, czech republic, estonia, cyprus, latvia, lithaunia, hungary, malta, poland, slovenia, slovakia, bulgaria, romania, and croatia.

what is the pakistans textile and apparel industry's strength

5th (book says 4th) largest producer of cotton in the world. slide 45 in chapter 11 ppt

what is APEC? who are the member states

Asia-Pacific Economics Cooperate. Japan, Taiwan, south korea, china, russia, US, canada, mexico, chile, peru, singapore, hong kong, malaysia, thailand, indonesia, the philippines, vietnam, papua new guinea, brunei, new zealand, australia

which country is the most competitive full-package clothing producer in the world?

China

what is DR-CAFTA? who are the member states?

The Dominican Republic - Central American Free Trade Agreement. US, El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and the Dominican Republic

who are the developed countries in the middle east/africa region? what role do those countries play in textiles and apparel

United Arab Emirates (Dubai), Israel, Saudi, Arabia tend to focus on the consumption of textile and apparel products.

What advantages does NAFTA bring to US and Canadian textiles and apparel industry? disadvantages?

advantages: 1. increase yarn and fabrics exports to Mexico. 2. Make US and Canada clothing goods easier access to Mexican retail market. 3. Make it easier for US and Canada based firms to build plants in Mexico. dis - employment in apparel manufacturing decreased 85% over last 25 years. industry adjustments: 1. increase business efficiency through consolidation. 2. focus on high-tech and high-value added products. 3. choose the right market niche.

what is the global competitiveness index (GCI)?

an indicator of how much support and/or opposition a company has to deal with to do business in a particular country.

what asian nations are well known for complying with social responsibility?

cambodia

what is re-exporting? who are involved in this trade practice?

designed in hong kong, assembly in china, re-exported into hong kong, shipped to US - "Made in Hong Kong

what is andean trade preference act? who are the member states?

duty-free access to US market for wide range of products. US, Bolivia, colombia, ecuador and peru.

what is the important role china plays in the textile and apparel (both a supplying and consuming country)

foreign trade and economic development

what is africa growth & opportunity act? what is its purpose?

gives trade preferences to SSA countries by US that meet certain requirements (2000-) slide 31 chapter 12

what are the weaknesses of mexico's textiles and apparel manufacturing industry?

has relatively high labor costs. product quality and production reliability problematic. weak middle management skills. concentrates on mass-producing basic garments. limited ability to offer full-package services and produce fashion apparel. security for shipments

what is the meaning of qualified industrial zones? what is the purpose for US to have this trade agreement with Jordan and Egypt

in 1996, the US congress established this initiative to support the peace process in the middle east. jordan and egypt receive duty- and quote-free trade status with US if textile and apparel products include some israeli content. it is designed to benefit israeli's textile industry.

how do levels of social costs affect the ability of EU countries to participate in the textiles and apparel industry? ch. 9

in developed countries it is common to have laws that require payment of both labor costs and social costs. in developing countries, not only are labor costs consistently lower but social costs may not be required by law or be included in wages of employees. because of the necessity of intense human involvement in textile and apparel production, lots of labor hours are commonly required. thus, costs of labor are primary considerations when determining locations for textiles or apparel production businesses.

What is Yarn-Forward rule? What trade agreements use it?

in order to quality for duty and quota free access to the US market, mexico produced garments have to use yarn and fabric from the US. NAFTA

understand the religion-oriented culture in the middle east/africa region. ch 12

judaism, christianity, islam/muslim. 1. muslims are obligated to pray 5 times a day. 2. friday is the day of faith. 3. when doing business in the middle east, handshakes are always used and can last a long time. 4. the middle eastern culture places more value on someone's words as opposed to a written agreement. 5. if you are introduced to a woman as a male avoid touching and prolonged eye contact with women.

under wto-atc, what are the competitive factors of textile and apparel production

low cost, skilled labor, product quality, reliable supply of competitively priced material, infrastructure condition and logistics, proximity and access to major important markets, effective management, social responsibility, security of shipping, a country's overall business climate.

why have japan, south korea, and taiwan moved away from apparel production to production of technical textiles

more advanced technologies, clothing consuming countries.

what is the vietnam's textile and apparel industry's strength

second largest supplier of textiles and apparel to the US market. upgraded production capabilities , becoming an attractive source of exports to the EU and US. a competitive alternative to China for mass-produced, low-end apparel.

what is association of southeast asian nations? who are the member states of ASEAN?

singapore, indonesia, malaysia, philippines, thailand, brunei. vietnam, laos, cambodia, myanmar

what competitive advantages does china have in textile and apparel production

textile and clothing - largest manufacturing industry. employs about 10 million workers. many clothing factories are equipped with modern technologies and produce a wide range of high-quality products. China represents 30% of total global trade in apparel. China is exporting less apparel and more textiles to the world

what is the feature of EU-15 countries?

their clothing imports come from: 1. mediterranean basin countries - turkey is top supplier from region. 2. preference to select developing countires - africa, caribbean, pacific region. 3. special trade agreements - select central/eastern european countries. 4. asia (china) - EU phased out textile quota restrictions on china on jan 1. 2008

what is sub saharan african countries can qualify for AGOAs treatment

they need to show that they have established or are making continual progress toward establishing the following: 1. market-based economies 2. the rule of law and political pluralism 3. elimination of barriers to US. trade and investment. 4. protection of intellectual property. 5. efforts to combat corruption. 6. policies to reduce poverty. 7. increasing availability of health care and educational opportunities. 8. protection of human rights and worker rights. 9. elimination of certain child labor practices.

what role do eastern european countries play in textiles and apparel?

use production of textiles and apparel as a means of industrialization. the fast-growing markets for commodity clothing products such as russia and turkey. gdp growth rate: 5-10%

what asian nations are considered viable alternatives to china for textiles and apparel production?

vietnam and indonesia

What is the FTAA? What is its current status?

Free Trade Area of the Americas - a proposed agreement by the US to eliminate or reduce the trade barriers among all countries in the Americas, excluding Cuba. 34 countries started negotiation in early 2000s, includes North, Central, and south america. it is currently working on 9 trade issues: market access, investment, services, government procurement, dispute settlement, agriculture, intellectual property rights, subsidies, antidumping, and countervailing duties, and competition policy.

where is the apparel production center located in US?

Los Angeles

what is the name of the new trade deal between Canada, Mexico, and the US

NAFTA

what is NAFTA and its focuses?

North American Free Trade Agreement. signed in 1992 and became effective in 1994. focuses primarily on trade and investment matters related to goods and services. immediately eliminated quotas. gradually reduced tariffs. eliminated restrictions on direct foreign investment