Abercrombie and Fitch Flashcards
HQ
Ohio, USA
Pays taxes to US government
TNCs are architects
Join different markets with different supply chains
Opened in UAE - more import/exports
Outsource
Subcontract manufacturing to ‘That’s It Sportswear’ (Bangladesh)
+ brand covers A&F, A&F Kids, Hollister, Gilly Hicks
Economies of scale
Offshore
Move operations to other countries
China, Vietnam, India, Guatemala
Cheap labour + child labour isn’t illegal
Glocalisation
Adapt products to local customers - taste, religion (no topless models), laws
Local regulation/restriction - Majid Al Futtaim Fashion
Trade blocs
Source locally and sell locally
Better PR and less import tariffs
Single bulk
Single bulk purchase, production, delivery
Less costs for manufacturing, delivery, showcase
Environment
TNCs get away with no regulation
Countries desperate for FDI so lower taxes
Workers depend on TNCs for jobs