Exam 2 Flashcards
Sustainability
Integrates economic, political, environmental, and cultural dimensions to promote cooperation and solidarity among the people and generations in its supply chain
Fair trade
Seeks greater equity in international trade
Standards of fair trade address
Opportunities for economically disadvantaged producers, transparency and accountability, trading practices, payment of fair prices, child and forced labor, gender equity and freedom of association, working conditions, and the environment
Rules of effective codes of conduct
Clearly stated and communicated, comes from leaders of organization, industry-wide document
Corporate social responsibility
Encompasses human rights, the environment, abiding by the law; society’s obligation to a group of people or the general population of a city or state or country towards well-being
Ethics
Includes your judgment that will protect the well-being of those who are involved in your organization
Morals
Based on location, degree of conformity, prescribed standards
Labor exploitation
Taking away the rights as a laborer that you should have
Defining characteristics of labor exploitation
Gender, education, financial status, children, elderly
Free trade
Self regulation of markets, consumers decide best product/service, no barriers to trade
Capitalism
Entrepreneurial approach to business, for the benefit of individuals, can take an idea and resources and go into business
Protectionism
Opposite of free trade, no global trade, exports are more important than imports, eliminates choice
Mercantilism
Belief in generating wealth for the country, exports are most important
10 presidents responsible for change in textile and apparel trade
FDR: protectionist, quota with Japan for cotton; Eisenhower: fabrications that were made from wool and cotton, protectionist; JFK: textile committee, STA, LTA; Nixon: MFA; Carter: MFA, first president to go to China; Reagan: MFA, import clauses removed; Bush: NAFTA; Clinton: NAFTA confirmed, WTO; GW Bush: DR-CAFTA, lower tariff; Obama: free trade with Peru, Colombia, bring production back to US
STA
Short Term Agreement; covers natural fibers, limit quota of imports, one year, JFK
LTA
Long Term Agreement; protectionist, limits amount of natural fiber imports, JFK
MFA
Multi-Fiber Arrangement; limited importation of natural and synthetic fibers, Nixon, Carter, Reagan, became ATC (Agreement on Textiles and Clothing)
GATT
General Agreement on Tariffs and Trade; Truman 1948, removal of tariffs and quotas, avoid war with countries we trade with, only for tangible items, stable basis of trade, no quotas except for textiles
Textile Monitoring Body
Oversees ATC
WTO
World Trade Organization; replaced/extended GATT, relax trade regulations in the US
Counterfeiting
The making or selling of look-alike goods or services bearing fake trademarks
Gray market goods
Original goods (not knockoffs) sold by unauthorized vendors
Knockoff
Imitation of the original using lower cost fabric and production methods; not counterfeit unless passed off as the original
Licensing contract
Legal transfer of intellectual property rights from the owner to another legal user; licensee pays licensor a royalty
Ways to circumvent import quotas
Transshipment, outward processing, fraud
Transshipment
When a country with limited quota for a particular country and on a specific product ships this product through another country to take advantage of the 2nd country’s unused quota
Outward processing
Shipment of cut, unassembled parts of a garment to a third country for assembly
Fraud
Use of fraudulent shipping documents and marks of origin to disguise the true country of origin
Criteria to determine real or counterfeit
Price, place, product
