FACS 139 STUDY GUIDE FRM MIDTERMS 1/2

Question 1

1. Between 1500 and 1750, England, France, and Spain competed and fought to acquire colonies and gold because according to __________ , a country’s wealth depends on it holding of treasure in particular gold.
   (MT1)

Answer 1

A. The theory of Absolute Advantage
B. The theory of Comparative Advantage
*C. The theory of Mercantilism
D. The theory of Factor Proportions

Question 2

2. Textile complex

MT1

Answer 2

A. refers to the fiber-to-fabric segment of the textile industry.
* B. refers to the industry chain from fiber, to fabric through the end uses of
apparel, interior furnishings, and industrial products
C. refers to the industry chain from fiber, textile industry, to end uses and distribution
D. refers to the combination of textile industry and apparel industry.

Question 3

3. All the following statements correctly describe the law of supply and the law of demand
   EXCEPT……..
   (MT1)

Answer 3

A. Law of supply refers to general statement about how producers adjust the quantity
of goods or service available in relation to incentives
B. Law of demand refers to a general statement about how individuals respond to
change in price.
C. Law of supply refers to a general statement from producers’ perspective, while law
of demand refers to a general statement from individual consumer’s
perspective
*D. Law of supply refers to a general statement about how individuals adjust the
quantity of goods or service available in relation to incentives

Question 4

4. When the Mainstream/Modernization Theories of Development and the Structural Theories of Development are compared
   (MT1)

Answer 4

A. The mainstream/modernization theories of development suggest that the rich
country is rich because of the poverty of other countries
B. The structural theories of development suggest that every country can reach the
most developed stage eventually
*C. The mainstream/modernization theories of development suggest that the
development means the accumulation of capital.
D. The structural theories of development suggest that all the countries in the world
are independent.

Question 5

5. When the transitional years from international trade are discuss, all the following happened in the 19th century EXCEPT
   (MT1)

Answer 5

*A. Emergence of protectionism
B. Foreign expansion
C. Migration of labor from Europe
D. A time of important changes in the US such as the tremendous economic changes,
population growth, and increasing per capita income.

Question 6

6. All of the following statements correctly describe the differences between a market-directed system and a centrally planned system EXCEPT
   (MT1)

Answer 6

A. In a market-directed economic system, companies are given the freedom to
respond to consumer demand, whereas government decides what companies
should produce and sell in a centrally planned system
*B. There is no competition in a market-directed system but there is a
competition in centrally planned system.
C. Price becomes the regulator of supply and demand in a market-directed system,
while government decides supply and demand in a centrally planned system.
D. Government determines the allocation of nation’s resource in a centrally
planned system, whereas consumers’ demands play a primary role in a
market-directed system.

Question 7

7. When the downstream activities and upstream activities are discussed, which of the following statements is NOT correct?
   (MT1)

Answer 7

A. Upstream activities are those process in the early stages of manufacturing chain.
B. The examples of upstream activities are fiber production, textile machinery, and
dyestuffs.
C. The examples of downstream activities are wholesale and retail
* D. Downstream activities are those processes in early stages of manufacturing
chain, such as fiber production, textile machinery, and dyestuffs.

Question 8

8. If it takes 15 minutes for Italy to make one pair of leather shoes, takes 30 minutes for INdonesia to make the same kind of shoes, and when making embroidery blouse is considered, Italy needs 20 minutes but Indonesia only needs 10 minutes, then
   (MT1)

Answer 8

A. Indonesia has the absolute advantage in making leather shoes
B. Indonesia has the comparative advantage in making leather shoes
* C. Italy has the absolute advantage in making leather shoes
D. Italy has the comparative advantage in making leather shoes.

Question 9

9. When developed countries, developing countries, and newly industrialized countries (NICS) are compared,
   (MT1)

Answer 9

A. NIC countries are former developed countries then have progressed to more
advanced levels of economic and industrial development
B. Developed countries are limited in their economic progress and have little or no
industrial development
C. The more industrially advanced and prosperous countries with a higher level of
living standards are developing countries
* D. NIC countries are former developing countries, then have progressed to more
advanced levels of economic and industrial development.

Question 10

10. Which of the following statements CORRECTLY describes the difference between democratic political systems and non democratic political systems
    (MT1)

Answer 10

A. In a democratic political system, people are under control, whereas people have a
voice in a non democratic political system.
*B. In a democratic political system, individuals have the right and responsibility
to be involved in decision making, whereas individuals have little right of
participation in decision making in a non democratic political system.
C. All persons have equal rights under non democratic political system, while a
selected few individuals hold the power and make decisions in a democratic
political system.
D. A democratic political system usually goes with a centrally planned economic
system, whereas a non democratic political system quite often goes with a
market-direct economic system

Question 11

11. According to the law of supply, when the reward offered for a specific product rises
    (MT1)

Answer 11

A. the reward provides an incentive to the producers to make fewer of the products.
B. this reward has no impact on the production of the products
*C. this reward provides an incentive to the producers to produce more products.
D. this reward provides an incentive to consumers to buy more merchandise

Question 12

12. Which of the following BEST describes Rostow’s Stages of Development
    (MT1)

Answer 12

A. the drive to maturity→the pre-take-off state→the take-off→the traditional
society→the age of high mass consumption
*B. the traditional society→the pre-take-off state→the take-off→the drive to
maturity →the age of high mass consumption
C. the pre-take-off state the →the take-off→the traditional
society→drive to maturity→the age of high mass consumption
D. the traditional society→the pre-take-off state→the age of high mass
consumption→the take-off→the drive to maturity

Question 13

13. According to the theory of Factor Proportions,

MT1

Answer 13

A. Developed countries should produce and export labor-intensive products
B. Developing countries should produce and export capital-intensive products.
* C. Capital-abundant countries should produce and export capital-intensive
products
D. If apparel industry and automobile industry are compared, developed countries
should choose apparel industry.

Question 14

14. If it takes 25 minutes for England to make one winter coat, takes 45 minutes for the Philippines to make the same kind of coat, and when making winter boots is considered, England needs 25 minutes, the Philippines needs 50 minutes, then
    (MT1)

Answer 14

A. The philippines has the comparative advantage in making boots
* B. the philippines has the comparative advantage in making winter coats
C. the philippines has the absolute advantage in making boots
D. the philippines has the absolute advantage in making winter coats

Question 15

15. According to the law of demand,

MT1

Answer 15

A. rising prices for product usually cause an increase in demand
B. rising prices for a product usually have no impact on demand
C. rising prices for a product usually cause a drop in supply
*D. rising prices for a product usually cause a drop in demand

Question 16

16. According to the three zones of development,

MT1

Answer 16

A. the first-world core owns 80% of the global capital
B. The second-world semiperiphery owns 16% of the global capital
C. The third-world periphery owns less of 5% of the global capital
* D. All of the above are correct

Question 17

17. When traditional years for international trade are discussed, all of the following happened in the early 20th century EXCEPT
    (MT1)

Answer 17

A. The development of an international economy
*B. the era of mercantilism
C. Economic nationalism builds
D. US as a leader in the world trade

Question 18

18. According to Factor Proportions theory, if the US is compared to India, and the apparel industry is compared to the computer industry,
    (MT1)

Answer 18

A. US should
C. US should choose the apparel industry instead of the computer industry
* D. India should choose the apparel industry rather than the computer industry

Question 19

19. In the market-direct system,

MT1

Answer 19

A. Government play a primary role in determining the allocation of a nation’s resources
B. There is no competition
C. Government establishes what will be produced, by whom, and for whom.
* D. Consumers have the opportunity to make the choices they wish from the
array of goods and services available at any given time.

Question 20

20. When reading an academic journal article, if I need to find out how the findings from the study can be applied in real life, I should read the section .
    (MT1)

Answer 20

A. Literature Review
B. Conclusions
* C. Implications
D. Introduction

Question 21

21. All of the following counties are NICE EXCEPT….

MT1

Answer 21

*A. India
B. Taiwan
C. Turkey
D. South Korea

Question 22

22. Which of the following questions can be answered by Factor Proportions Theory?
    (MT1)

Answer 22

A. Which country is more developed and which country is less developed?
* B. How to identify the product areas in which a country might have their greatest
advantage?
C. Which stage of development a country is at currently?
D. Should a country export more than import?

Question 23

23. Those countries which belong to the third-world periphery have a lot of high-tech/high wage industry
    T/F
    (MT1)

Answer 23

False

Question 24

24. When some country does not have absolute advantage in an industry, the theory of absolute advantage can not explain what they can import and export
    T/F
    (MT1)

Answer 24

True

Question 25

25. When opportunity cost is discussed, in general, we should choose the option which has higher opportunity cost
    T/F
    (MT1)

Answer 25

True

Question 26

26. The price at which the quantity demanded is 5% higher than the quantity of supplied is called equilibrium price
    T/F
    (MT1)

Answer 26

False

Question 27

27. When I read an academic journal article and if I don’t quite understand the abstract, I should read the beginning part of literature review
    T/F
    (MT1)

Answer 27

False

Question 28

28. Adam Smith is the first economist who developed the theory of comparative advantage.
    T/F
    (MT1)

Answer 28

false

Question 29

29. The mainstream/modernization theories of development provide the structure of trickle down economics among different grips of countries
    T/F
    (MT1)

Answer 29

True

Question 30

30. Most developed countries are on the stage of pre-take-off or the traditional society according to Rostow’s stages of development, whereas most developing countries are on the stage of drive to maturity or the high mass consumption.
    T/F
    (MT1)

Answer 30

False

Question 31

31. According to the three zones of development, 15% of the world population live in the first-world core and 60% of the world population live in the third-world periphery
    T/F
    (MT1)

Answer 31

True

Question 32

32. One of the questions could be answered by factor proportions theory is how to identify the product area in which countries might have their greatest advantage
    T/F
    (MT1)

Answer 32

True

Question 33

33.When Cuba and Canada are compared, Canada has a democratic political system, while Cuba has a non democratic political system
T/F
(MT1)

Answer 33

True

Question 34

34. The largest source of industrial employment for the world is provided by textile and apparel industries.
    T/F
    (MT1)

Answer 34

True

Question 35

35. Soft goods chain refers to the textile sector that includes fiber industry, textile industry, and end uses
    T/F
    (MT1)

Answer 35

false

Question 36

36. According to the structural theories of development every country’s development depends on accumulation of capital and technology
    T/F
    (MT1)

Answer 36

false

Question 37

37. In many countries, textile industry led the Industrial Revolution when it became the first sector to shift from the use of skilled hand labor to production based on powered machines
    T/F
    (MT1)

Answer 37

true

Question 38

38. According to the theory of factor proportions, natural resources (such as oil and water) and technology are two requisite factors of production
    T/F
    (MT1)

Answer 38

false

Question 39

39. In a voluntary exchange, only one party either the buyer or the seller is able to make a profit.
    T/F
    (MT1)

Answer 39

false

Question 40

40. According to the structural theories of development textile and apparel industries play a role in exploitation b/w developed countries and developing countries
    T/F
    (MT1)

Answer 40

true

Question 41

41. Textile sector is same as textile complex, which includes fiber industry, textile industry, and the end uses, such as home furnishing, apparel industry, and industrial goods
    T/F
    (MT1)

Answer 41

true

Question 42

42. Facing with two options, we often give up the option which has higher opportunity cost
    T/F
    (MT1)

Answer 42

false

Question 43

43. The US became a leader in world trade in the 19th century
    T/F
    (MT1)

Answer 43

False

Question 44

44. Samuel Slater and Eli Whitney are two of the key people who contributed to the development of textile machinery in the American History.
    T/F
    (MT1)

Answer 44

True

Question 45

45. In an academic journal article, for the literature review section, articles are often reviewed individually.
    T/F
    (MT1)

Answer 45

False

Question 46

1. When the global pattern of employment in textile and apparel industries is discussed.
   (MT2)

Answer 46

A. The number of textiles employees in developed countries has decreased, whereas
the number of textile employees in developing countries has increased
B. The number of apparel employees in developing countries has increased a lot.
C. Neither A nor B
* D. Both A and B

Question 47

2. Lets assume that every year Italy imports $200,000 clothing from other countries, exports $50,000 Italy made clothing to other countries and Italy’s apparel industry produces $250,000 clothing. Then what is their clothing import penetration?
   (MT2)

Answer 47

A. 60%
* B. 50%
C. 45%
D. 30%

Question 48

3. When the textile and apparel stages of development in relation to broader development is discussed.
   (MT2)

Answer 48

A. The stages of development for textile and apparel production always parallel the
development stages of a nation or region.
B. The stages of development for textile and apparel production generally parallel the
development stages of nation or region after the countries turn from developing
countries to developed countries
* C. The stages of development for textile and apparel production generally
parallel the development stages of a nation or region before the countries
turn from developing countries to developed countries
D. The stages of development for textile and apparel production stages of a nation or
region.

Question 49

4. All of the following statement correctly describe the global pattern of production and employment in textiles and apparel industries EXCEPT
   (MT2)

Answer 49

A. Employment has shift from developed countries to developing countries
B. Production has shifted from developed countries to developing countries
C. Changes in production and employment toward developing countries from
developed countries to apparel industry are bigger than those in textile industry.
* D. Both textile and apparel industries have decline if we consider the world as a
whole

Question 50

5. When the global pattern of textile production is discussed,
   (MT2)

Answer 50

A. Developed countries’ production has increased rapidly, while developing countries
production has stayed same or even decline.
B. Production of both developed countries and developing countries have decrease
dramatically
C. Productions of both developed countries and developing countries have stayed the
same.
* D. Developed countries production has grown slowly or stayed same or
declined, while developing countries’ production has increased a lot

Question 51

6. All of the following statement about GATT are correct EXCEPT
   (MT2)

Answer 51

A. GATT prohibits quotas
B. GATT is the first multilateral trade agreements in the history.
* C.GATT is the trade agreement only for textile and apparel industries.
D. The primary goal of GATT was to liberalize trade.

Question 52

7. When the basic principle of GATT are discussed, all of the following statements are correct EXCEPT……
   (MT2)

Answer 52

A. Trade without discrimination
* B. Protection through quotas is allowed
C. Protection through tariffs is allowed
D. A stable basis for trade

Question 53

8. Which one of the following statements BEST describes the global pattern of apparel production
   (MT2)

Answer 53

A. developed countries have produced almost the same amount
*B. The share of developing countries and NICS has tripled.
C. Both A and B
D. Neither A nor B

Question 54

9. Which one of the following is the first multilateral agreements in the world in textile sector?
   (MT2)

Answer 54

A. STA
* B. GATT
C. WTO
D. MFA

Question 55

10. When the global patterns of trade in textiles and apparel are discussed,
    (MT2)

Answer 55

A. Textile exports from developed countries have increased and textile imports into
developed countries have decreased.
* B. Textile exports from developing countries have increased and textile imports
into developing countries have decreased
C. Apparel exports from developed countries have increased and apparel imports into
developed countries have decreased
D. Apparel exports from developed countries have decreased and apparel imports into
developing countries have increased

Question 56

11. All of the following statements correctly describe STA and LTA except
    (MT2)

Answer 56

A. Because GATT could not take care of textile complex, part of textiles trade policies
were separated from GATT and became the bases of STA
B. Both STA and LTA only had restrictions on cotton products.
C. STA stands for Short Term Arrangement and LTA stands for Long Term
Arrangement
* D. STA was only focusing on cotton products, whereas LTA included restrictions
only on cotton products and manufactured fiber products.

Question 57

12. All of the following statements correctly describe MFA except?
    (MT2)

Answer 57

A. Separated from GATT, MFA provided special trade rules for textiles and apparel
industries.
B. Trade discrimination was permitted under MFA
C. Both quotas and tariffs were allowed under MFA
*D. MFA was a multilateral trade agreement

Question 58

13. If we compare the stage of early export of apparel to the “golden age” stage
    (MT2)

Answer 58

A. The countries at the “golden age” stage usually have large trade deficit whereas the
countries at the stage of early export of apparel have large trade surplus.
*B. The countries at the “golden age” stage usually provide products with better
quality than the countries at the stage of early export of apparel do.
C. The countries at the “golden age” stage start to build up more apparel
manufacturers domestically, whereas the countries at the stage of early export
of apparel start to shift their industries to other countries.
D. Central American countries are at the “golden age” stage while South Korea, Hong
Kong, and Taiwan are at the stage of early export of apparel.

Question 59

14. Which of the following statements is correct regarding tariffs and quotas?
    (MT2)

Answer 59

*A. WTO allows tariffs but not quotas
B. LTA allows tariffs, but not quotas
C. GATT allows quotas but not tariffs
D. MFA allows tariffs but not quotas

Question 60

15. When the stages of development in the textile complex are discussed, all of the following statements correctly describe the characteristics of the significant decline stage EXCEPT
    (MT2)

Answer 60

A. At this stage the number of firms in the textile complex decreases significantly, while
the offshore production increases.
B. At this stage, domestic production of fabric improves greatly in volume, quality, and
sophistication.
C. At the stage, the number of workers in the textile complex decreases significantly.
*D. At this stage, trade deficits occur in many segments, particularly apparel and
fabric.

Question 61

16. Currently, which of the following countries is at the “golden age” stage in term of their textile sector?
    (MT2)

Answer 61

A. The US
B. Japan
C. Guatemala
*D. Mexico

Question 62

17. If country A has a 50% import penetration on RTW products and country B has a 10% import penetration then
    (MT2)

Answer 62

A. Country A is more developed than country B in term of their RTW industry
*B. Country A is more dependent on imports than country B for their RTW market
C. Country A has a larger RTW industry than country B does
D. Country A has a larger RTW market than country B does

Question 63

18. When the US apparel industry and textile industry are compared.
    (MT2)

Answer 63

*A. The US textile industry has more companies than the US apparel industry
B. The US textile industry hires more employees than the US apparel industry does
C. Most US apparel companies are family owned and small sized companies, whereas
most textile companies are much bigger in terms of investment and renting
space.
D. Most US textile companies are family owned and small sized companies whereas
most apparel companies have much bigger size in terms of investment and
renting space

Question 64

19. All of the following statements correctly describe the US textile and apparel industries EXCEPT.
    (MT2)

Answer 64

A. The US fiber industry still play an important role in the world because it is the leading
producers of manufactured fibers and one of the major cotton suppliers.
B. The number of textile mills that produce yarns and fabrics in the US has decreased
but the productivity has increased
C. The US fiber exports have increased but the US share of market in the world has
decreased.
*D. The US textile mill products focus on foreign markets rather than domestic
needs.

Question 65

20. Which one of the following was the main reason of why textile sector was separate from the rest of the sectors after GATT was developed?
    (MT2)

Answer 65

A. Textile sector requires lots of natural resources
B. Textile sector requires high technology
*C. Textile sector requires lots of cheap labor
D. Textile sector requires a lot of capital.

Question 66

21. All of the following are strategies adopted by developed countries after their textile sector declines EXCEPT
    (MT2)

Answer 66

A. Outsourcing
B. Further technology development
C. Government’s involvement in policy establishment
*D. Increasing textile and apparel export

Question 67

22. In the US history when was the “golden age” for the US textile sector?
    (MT2)

Answer 67

A. After WWII
B. The present time
C. After WTO was established
*D. Before 1947

Question 68

23. Which of the following correctly describes the stages of development in the textile complex?
    (MT2)

Answer 68

*A. the embryonic stage → early export of apparel → more advanced production
of fabric and apparel → the “golden age”→ Full Maturity → significant
decline
B. the embryonic stage → the “golden age”→ Full Maturity → early export of apparel
→ more advanced production of fabric and apparel → significant decline
C. the embryonic stage → early export of apparel → the “golden age”→ Full Maturity
→ more advanced production of fabric and apparel → significant decline
D. the embryonic stage → Full Maturity → significant decline → early export of
apparel → more advanced production of fabric and apparel → the “golden age”

Question 69

24. When the stages of development in the textile complex are discussed, at the embryonic stage, the production of textile and clothing is normally too expensive domestically. So they are often conducted in other countries.
    T/F
    (MT2)

Answer 69

False

Question 70

25. Large trade surplus in textile sector often happens at “Golden Age” stage
    T/F
    (MT2)

Answer 70

True

Question 71

26. According to the stages of development in textile sector, countries at the first four stages are all developing countries
    T/F
    (MT2)

Answer 71

False

Question 72

27. When the US exporting volume of fibers has increased ,the US market share has increased as well
    T/F
    (MT2)

Answer 72

False

Question 73

28. As a very unique sector, textile sector is always different from most other sectors included in the original GATT. Due to those unique characteristics, textile sector was separated from GATT and generated a different set of regulations which was short term arrangements STA
    T/F
    (MT2)

Answer 73

True

Question 74

29. The majority of textile companies in the US are family owned small companies
    T/F
    (MT2)

Answer 74

False

Question 75

30. Most developing countries today are at the “golden age” stage for their textile sector.
    T/F
    (MT2)

Answer 75

False

Question 76

31. STA was mainly focusing on polyester and nylon two manufactured fibers, because those were two most popular fibers in the global market back then.
    T/F
    (MT2)

Answer 76

False

Question 77

32. Market disruption occurs when a country exports products to a market with a price lower than the cost in the market.
    T/F
    (MT2)

Answer 77

True

Question 78

33. Rerouting products through a country other than where they were produced in order to take advantage of unused quotas is called transhipment. The prohibition of transshipments started to be included in MFA 11
    T/F
    (MT2)

Answer 78

False

Question 79

34. GATT, MFA, and WTO are the special regulations only for textile sector
    T/F
    (MT2)

Answer 79

False

Question 80

35. The basic principles of GATT are mainly against those MFA but consistent with those of WTO.
    T/F
    (MT2)

Answer 80

False

Question 81

36. In general, if a country has a high import penetration, that country tends to have a low dependence on importing from other countries.
    T/F
    (MT2)

Answer 81

False

Question 82

37. The US is one of the leading producers of manufactured fibers in the global market
    T/F
    (MT2)

Answer 82

True

Question 83

38. Developed countries normally have higher import penetration than developing countries do in the apparel part of textile sector.
    T/F
    (MT2)

Answer 83

True

Question 84

39. The current textile industry and clothing industry in the US face a very similar situation
    T/F
    (MT2)

Answer 84

False

Question 85

40. The US textile sector has more companies and employees in the textile industry than in the clothing industry
    T/F
    (MT2)

Answer 85

False

Question 86

41. The more developed a country is in term of its general economy the more developed the country’s textile sector is.
    T/F
    (MT2)

Answer 86

True

Question 87

42. According to the basic principles, GATT and WTO are similar which are both opposite of MFA
    T/F
    (MT2)

Answer 87

True

Question 88

43. Today most ASEAN countries are at the stage of “more advanced production of fabric and apparel
    T/F
    (MT2)

Answer 88

True

Question 89

44. Countries at the embryonic stage in their textile sector often export manmade fibers
    T/F
    (MT2)

Answer 89

False

Question 90

45. The textile products made of silk, flax, and ramie were included on the restricting list in MFA 11
    T/F
    (MT2)

Answer 90

False

Question 91

1.What are the adjustment strategies in textile and apparel industries in all countries including US?

CH12

Answer 91

A.Use protectionist measures (tariff and nontariff restrictions) against import
B.Seek to balance the impact of wage increases with productivity increases and with strategies to minimize wage increases.
C.Seek some degree of specialization at the company or national level
D.Seek to integrate textile complexes vertically and/or horizontally(Vertically = they do growing it, fibers, to apparel/ EVERYTHING IN THAT COUNTRY)
E.Seek to upgrade technologies and manufacturing processes to replace labor.

Question 92

2.What are the special protections for US domestic textile and apparel industries?
CH12

Answer 92

A.Maintaining Employment
1. To keep T & C domestically as much as possible 807/9802 - we do all the growing of fibers and then ship them to Mexico to get sewn US - fiber, yarn, fabric, design inventory cut fabric
2.Retaliation - protection to save jobs in one industry may reduce employment in another.
B.Temporary import restraints because resources cannot be shifted easily.
1.Temporary import restraints because resources cannot be shifted easily
C.Preserving the Income of Certain Groups
1.To protect special groups who do not have other alternative
D.Preserving Key Industries
1.For defense purpose, the country should be self-sufficient in producing goods in case of war.
2.Depend on domestic T & C rather than other nations for military uniforms, shoes, tents, parachutes, etc -2 concepts Free Trade - no rules, no regulation, no taxes Fair Trade - some kind of limitation Which one do you think is better? fair trade is better from US perspective. . Mexico would be Free trade, it would benefit them more. France would be fair trade. Developing countries are more free trade, developed countries are fair trade
E.Combating Unfair Trade
1.Industries in developed countries have demanded “Fair trade” rather than free trade

Question 93

3.What are the US domestic textile and apparel industries’ troublesome from developing countries?
CH12

Answer 93

A.Dumping
1.occurs when a product is exported from a country at a price below that country’s cost of production
2.A means of disposing of a capacity surplus of products
B.Subsidies
1.A financial benefit conferred by a government on an industry or a firm
2.many developing countries make low-interest loans to their T&C industries
C.Highly Restrictive Tariff Levels
1.Developing countries have placed high tariffs on products entering their markets
D.Closed or Partly Closed markets
1.a number of countries partly close their market: Apparel is not permitted to enter, but textile goods are accepted

Question 94

1.What are the US retailers’ reasons for buying imports?

CH13

Answer 94

1.Retailers reasons for buying imports
A.Lower costs and possibly higher markups
B. Attractive prices to customers
C.Variety and exclusivity
D.Private label lines
E.Certain products are not available from domestic producers (T/F ALL THE IMPORTED GOODS HAVE BAD QUALITY:FALSE, DEPENDS ON THE PLACE, DEVELOPING WILL BE NOT AS GOOD, IMPORTS FROM DEVELOPED WILL BE BETTER)
F.Overseas producers service and willingness to please
G. Interia
1.Refers to the established way of looking a things or doing things
2.If buyers secured their apparel lines overseas the previous year, they probably continued doing so without a through review of long-term costs and benefits available through a wide array of sourcing options

Question 95

2.What are the US retailers’ problems in buying imported textile and apparel?
CH13

Answer 95

A.Poor or unpredictable quality
B.Longer lead times are required
C.Slow, unpredictable deliveries 
D.Uncertainties related to trade regulations
E.Uncertainties of cost
F.Lack of resource for poor service
G,Buying and shipping expenses
H.Negative customer reaction- if customers want domestic clothing

Question 96

1.Do we, as consumers, like to buy imports? What do we gain? What do we lose?
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Answer 96

Consumer gains from textile/apparel trade
A.an increased range of products available
1.goods not available in one’s home market
2.Products with distinctive design features
3.Products no longer produced domestically
B.Potentially lower prices

Question 97

1. What kind of role do US policy makers play?

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Answer 97

multiple pressures on policy makers

Question 98

1.Taiwan

STUDENT PRESENTATIONS

Answer 98

1. Newly industrialized country- us played key role throughout history in economic development in the textiles and apparel industry.
2. Taiwan no longer has their textile and apparel industry as their leading sector in production because it is a NIC

Question 99

2.South Korea

STUDENT PRESENTATIONS

Answer 99

1. The united states and south korea have comparative advantage in regards to the textiles and apparel sectors.
2. Globally, south korea is 1 out of top 10 countries in exporting textiles and apparel.

Question 100

3.The Philippines

STUDENT PRESENTATIONS

Answer 100

1. The Philippines do not make a larger impact on the textile and apparel industry in the global eeconomy.
2. The Philippines have an absolute advantage in trade with the united states.

Question 101

4.Bangladesh

STUDENT PRESENTATIONS

Answer 101

1. Bangaleshs apparel industry has been around for thousands of years but whats unique is that they do hand stitching and embroidery work.
2. 90% employement in the apparel industry are women

Question 102

5.Vietnam

STUDENT PRESENTATIONS

Answer 102

1. Vietnam is a member of the wto

2 Vietnam is currently one of the top five apparel exporters , globally

Question 103

6. Italy

STUDENT PRESENTATIONS

Answer 103

1. Italy is not a major producer of textiles

2. Products made in Italy have a high reputation

Question 104

7.France

STUDENT PRESENTATIONS

Answer 104

1. this country imports more apparel and textile than they export.
2. this country is focusing on producing innovative and sustainable textiles

Question 105

8.Mexico

STUDENT PRESENTATIONS

Answer 105

1. This country is a labor intensive developing country.

2. this country exports apparel to the united states

Question 106

9.Egypt

STUDENT PRESENTATIONS

Answer 106

1. this country is home to the only fully vertically integrated textiles industry in the middle east.
2. this countrys governement introduced strict trade regulations on imports in ready-made garments to protect the local market

Question 107

10.Australia

STUDENT PRESENTATIONS

Answer 107

1. 1990’s; the local TCF sector shifted the labor-intensive aspects of the production overseas. Resulting in large numbers of TCF firms closed down&employement fell drastically.
2. Currently, this country is still the biggest producer and main souce of apparel wools entering international trade channels

Question 108

11.Thailand

STUDENT PRESENTATIONS

Answer 108

1. The success of this country is earned by exporting products which amounts to an estimate of $6,444 million.
2. This country is still a developing country.

Question 109

12.India

STUDENT PRESENTATIONS

Answer 109

1. This country is one of the top producers for exporting cotton.
2. The united states rely on imports from this countries when it comes to textiles and apparel.

Question 110

13.Japan

STUDENT PRESENTATIONS

Answer 110

1. This country is the 5th largest market for the United State textile and apparel exports
2. . This countrys consumers have a high purchasing power and have a need for united states goods because they buy according to quality of fabric rather than sight.

Question 111

14.Dominican Republic

STUDENT PRESENTATIONS

Answer 111

1. This country is ranked not the lost as one of the largest export market for U.S good in Latin america.
2. This country is a major trading partner with the united state both in terms of export and imports for textile and apparel productions

Question 112

15.Indonesia

STUDENT PRESENTATIONS

Answer 112

1. This country is the 12th largest exporter for textile products.
2. This country is one of the top apparel exporters to the united states

Question 113

16.Hong Kong NIC

STUDENT PRESENTATIONS

Answer 113

1. This countrys location allows them to be a global sourcing hub for imports , exports, and re-exports.
2. This country is the largest re-exports country in the world with more than 75% of its imports being re-exported.