midterm Flashcards
- Where were most textile and apparel products produced in the mid 20th century?
within domestic economies
how did this change in the 1980’s (domestic apparel production)?
The source of these products changed from domestic to international to multinational to global as textile and apparel professionals sought ever elusive supplies of merchandise that would both satisfy customers and generate levels of profit necessary to sustain their business
what is the textile complex?
everything that connects textiles from around the world
the textile complex incorporates firms around the world to accomplish textile fiber production and manufacturing, textile manufacturing, apparel manufacturing retailing and product consumption
what is the difference between domestic trade international trade and global trade?
domestic trade refers to the exchange of goods services or both within the boundaries of a specified state or country
international trade is any exchange of goods involving two or more countries
global trade goes on to include the potential participation of many groups
international and global sometimes used interchangeably but most people understand global means universal and comprehensive - pertaining to the whole world
what are trade agreements
established by governments to enhance or control trade; fall under politics
is the textile trade a 20th century phenomena
no china shill road ancient
what is sourcing?
the process of determining the most cost efficient vendor of services material production or finished goods or a combination of these at a specified quality and service level for delivery within an identified time frame
what is the primary driver of the growth of international trade of textiles and apparel
sourcing products bt firms based in developed countries from firms based in developing countries with low labor costs, sourcing priorities have contributed to the globalization of trade by driving the apparel manufacturing industry in particular around the world
what is globalization
the process whereby the world’s people, their firms and their countries become increasingly interconnected in all facets of their lives
what is the difference between imports and exports
imports are goods available for domestic consumption or materials available for domestic production because of exports pif other countries exports are goods shipped to another country for import in exchange for money, other goods or jobs
what is a trade balance
relationship between imports and exports of a country
trade balance = exports - imports
what is the difference between a trade surplus and trade deficit
trade surplus is a positive trade balance, value of exports exceeds value of imports, trade deficit is a negative trade balance where the value of imports exceeds value of exports
what is apparel sourcing?
identifying the appropriate countries of origin and contracting with cost efficient vendors for services reduction or finished goods
what is textile materials sourcing?
identifying appropriate countries of origin and contracting with cosset efficient vendors of fabric thread or findings at a specific quantity quality and device level for delivery within a designated time frame
why was hong kong the first to develop the expertise to offer apparel sourcing
demand in hong kong exceeded what could be produced in a small country
what is japan known for exporting?
exporting high tech fivers and fabrics including microfibers
What are least developed, developed, developing, and newly developing countries?
a. Developed = comparatively rich
b. Developing = comparatively less rich
c. Newly developing = comparatively poor
d. Least developed = poorest
What did first world, second world, and third world refer to and why are these terms no longer widely used?
After World War II, The First World referred to the North American and European Western bloc, and the Second World referred to the Soviet-led Eastern bloc. Western and Eastern referred to two socio-political regions in the northern half of the gloves hemispheres. During the last half of the 20th century, the two blocs had the most economic and military power and faced off in an ideological confrontation known as the cold war. The Third World referred to countries in the globe’s southern hemisphere, namely countries in Asia, Africa, <Latin America and the pacific that were trying to make their own way in a rapidly developing world. These terms are no longer widely used because of the demise of the Soviet Union, but you may come across them in descriptions of recent history (Ellwood, 2001). (14)
b. First = north American and European western bloc, Second = soviet led eastern bloc, Third + countries in globes southern hemisphere.
c. Now we are more economic vs. political.
what is pre capita
each measure is presented by or for wCH INDIVIDUAL THE TOTAL IS DIVIDED BY THE NUMBER OF INDIVIduals all share equally
gross national product
the value of average output produced by domestic residents of a nation as they labor within that nation - key produced domestically within nation
gross national product per capita
gross national product of a country divided by the number of people in the population
gross domestic product
the market value of the output if products and services produced within a country in a year
why do you have to use the same measure when comparing the economic will being of individual nations?
apples and oranges ideas
how did developed countries build their economic base?
industrialization
what were/are many of these economies built on
industrial revolution / textile products
everything is made of textiles
what is the textile complex
combination of all firms of textile related business that supply soft goods to the world
what is a firm?
any business corporation proprietorship or partnership
what are soft goods?
products made of textile materials
describe in general textile and apparel firms in the mid 20th c.
small and family owned
how did many firms survive in the 20th c?
horisontal integration
What is horizontal integration?
change brought about through mergers (firms with similar functions joining forces to form one larger business) and Takeovers (strong firms absorbing weaker firms to form one larger business).
What is vertical integration?
when firms that perform different stages in the planning, design, production and distribution of products join to form one larger business. Takeovers are also means used to create a vertically integrated textile or apparel firm especially if supply of essential material or equipment is involved. (23)
When did we see a lot of mergers?
mergers and acquisitions were on all time high since the 1990’s
What is the first level of the textile complex? What does it primarily deal with?
fiber agriculture production and manufacturing: textile fiber commodity marketing. (23)
It primarily deals with fibers and fiber production and sale.
What is the second level and what does it deal with?
textiles, textile products, and findings manufacturing: wholesale materials marketing; all activities related to textile manufacturing including yarns, fabrics, fabric finishing and the production of findings. (24)
When textile production became commercialized in the mid 1800s, how did companies operate?
Historically in the United States beginning in the mid 1800s as textile production became commercialized each of the stages of textile production was completed by individual family owed businesses. The products were bought and sold in each stage of textile development
What are findings?
are materials other than face fabric used to construct garments: interlinings, pocket bags, linings, closures and trims. (8)
What is Premiere Vision?
International market fair for textile products held in Paris France
what is level 3 of the textile complex?
appareal manufacturing: wholesale finished goods marketing
whay has the term apparel manufacturer been replaced by apparel firm or brand manager?
the emphasis on marketingg nationally and internationally know brands of merchandising
what are the two primary forms of production contractors
CMT cut make trim and full package
what is the VF Corporation
an example of a firm that has integrated many stages iin production the worlds largest apparel firm
what is the fourth level in the textile complex?q
department , mass, specialty, electronic, and other forms of retailing
What is homogenization? Do you think this is an issue? Why or why not?
Erosion of culture due to globalization
The text mentions the tailored business suit as an example of homogenization, what is another example?
Blue jeans, t-shirts, athletic gear
How did buying offices change from the 1950s until today?
more involved in product development for private label s once mergers happened, race to find lowed cost labor, standardization merch id system
What is import and export trading?
recently developed type of enterprise that assists textile and apparel firms in satisfying customer demand for goods and services from the global market
What is a supply chain?
otal sequence of business processes involving single or multiple businesses and countries that enables demand for products or services to be satisfied
Who is Li Fung? Why are they important
Li Fung is the dominant firm involved with supply chains, they are important because sourcing is key to success.
Main sourcing firm based in hong kong
what are trade barriers?
anything that regulates or restricts trade state trading, tariffs, quotas, foreign investment limits.
what are politics?
are the methods or tactics involved in managing an organization business state or government sometimes including crafty unprincipled politics.
consumer obsolescence
is discarding a good due to a lack of interest rather than a lack of utility for the object. Out of fashion clothing is an example.
is the fashion cycle faster or slower in poorer countries
slower
Why are styles in developed countries known in all different types of countries
Styles in developed countries are known in all different types of countries because donated clothing given to those countries show styles. The prevalence of communication technology, the internet, etc., also accounts for this knowledge.
According to the text, what is one of the greatest shortcomings of capitalism?
one great shortcoming of capitalism is that it relies on the slowed economic development of countries, making them poorer than other countries.
Well -being as referred to in our text
refers to a good or satisfactory existence at a given place/time.
buying power
the amount of goods purchased at a given place/time with a certain amount of money.
consumption
using goods/services
example of a good and an example of a sevice
a good is a jacket, a service is a tailoring store
what does living refer to?
consuming and pre suing a lifestyle and having an income sufficient to live
What does standard refer to?
the level of life desired to strive for resulting in either gratification or frustration or both
what is the level of consumption
what is experienced enjoyed or suffered by an individual or group
What is a standard of living and what is it based on?
based off of the culture or society of a given group or individual.
In your standard of living, what is more important?
I probably strive more for being self-actualized and accepted by other people than looking for a shelter or food.
what is total income
gross income made from work
disposable income
is the “take home” pay after taxes are removed
what is consumption expenditure?
expenditure is money used to support consuming during a given period.
discretionary income
is money left after spending on obligations – my discretionary income is what’s available after paying for rent, bills and insurance.
poverty
is the lack of income/resources to satisfy minimum needs.
poverty line
is the point at which income/resources are inadequate to maintain life and health.
minimum needs
are the standards or levels of consumption and living, which vary according to place and time. For example, someone’s minimum needs 80 years ago might be different from those today in the U.S.
What is the difference between superior, normal, and inferior goods?
a. Superior goods: the consumption of a good is positively correlated with income at a faster rate than income changes. Economic luxuries.
b. Normal goods: positive correlation with income at a slower rate than income changes. Economic necessities.
c. inferior goods: negative correlation with income.
Superior goods
: the consumption of a good is positively correlated with income at a faster rate than income changes. Economic luxuries
normal goods
positive correlation with income at a slower rate than income changes. Economic necessities.
inferior goods
negative correlation with income
What is the consumer price index?
is a measure of the impact of inflation on consumer buying power in the US.
How do they collect data for the CPI?
is collected by interviews and surveys with households
Why does the text state that the price of apparel is a bargain at the moment?
because apparel is now available quicker than it can be sold, and retailers need to compete with each other for sales
What is the difference between progressive and regressive taxes?
a. Progressive taxes: the rate increases with income
b. Regressive taxes: the rate decreases with income.
Progressive tax
rate increases with income
regressive tax
rate decreases with income
why do some policymakers not apply races to food or clothing?
these are considered economic necesities
What is the global TA industry described as a matrix?
interconnected structures and activities that provides multiple venues for designing, producing, marketing, merchandising, and distributing textiles and apparel and that begins and ends with consumers
What is the Harmonized System?
international Harmonized Commodity Description and Classification System, devel- oped by the World Customs organization
who uses this system?
used by more than 200 countries as a basis for the collection of international trade statistics and as a foundation for their tariff syste
What is the Harmonized Tariff Schedule of the US?
The HTS is based on the HS and is the primary resource for determining tariff classifications for goods imported into and exported from the United States
How does the HTS work and who maintains it?
The HTS is divided into 99 chapters and contains numerous appendices and indexes. Textile products are assigned to Chapters 50 through 60; apparel products are identified in Chapters 61 (knit) and 62 (woven). The sys- tem is maintained by The U.S. International Trade Commission (USITC)
What did the US, Canada, and Mexico join in 1994?
north american federal trade agreement
Why did these countries have trouble documenting products?
different systems of measurement
What did they develop in order to address this issue?
North American Industry Classification System
What does NAICS facilitate?
Standardizes the identification of textiles and apparel and other products in a manner consistent with the world market
Why did synthetic fiber producers merge? What type of merge was this called?
Horizontal mergers happened because it enabled better developments
What is DuPont now called?
INVISTA
Why do developed nations tend to excel in dyeing and finishing techniques?
They have better access to technologies used to do advanced finishing techniques
What countries are involved in these techniques?
a. United States, Japan and Germany
b. Followed by Taiwan and south korea
Why is production of women’s and girls cut-and-sew garments in small productions runs?
To maintain flexibility to produce new fashions as consumers seek them
What does logistics refer to in the text?
The science of moving products through the supply chain to their final destination in a timely manner
What is a UPC?
Universal product code
What is a newer logistic tool used by the industry? What company implanted this technology first into the supply chain?
Radio frequency identification
What is mass customization?
Team based flexible manufacturing to produce a variety of styles based on individual consumer demand
Are these systems helping the apparel industry?
Flexible systems make it possible to respond to cus- tomer demand for greater variety of styles with more frequent introduction of new styles on the retail sales floor
Have they developed automated garment sewing?
no
Have they developed automated textile production? For all textiles? Describe.
yes, but not for all
Why were/are women the predominant sewers in the apparel industry?
the practice of low wages for women
what is a sweatshop
firms taking advantage of employees and offering very very low wages and poor condition
what is the WTO
world trade organization
what is the purpose of the WTO?
to ensure that trade flows as smoothly predictable and freely as possible
what is GATT?
General agreements on tariffs and trade
why are imports a concern for developed countries
trade deficits
What are corporate social, environmental, political, and economic responsibilities?
responsibilities to the general zeitgeist of the world, making sure you are not adversely effecting
what are codes of conduct?
statements of principles and standards by which business decisions are made
what is sustainability?
involving methods that do not completely use up or destroy natural resources
what is a consumer activist?
activism undertaken on behalf of consumers to assert consumer rights
What is social responsibility?
the idea that companies should embrace its social responsibilities and not be solely focused on maximizing profits.
What is the Fair labor association? Who is a part of it and what do they do?
coalition of companies, universities and NGO’s dedicated to improving labour conditions around the world. They focus on reducing labour exploitation.
What is environmental sustainability?
a state in which the demands placed on the environment can be met without reducing its capacity to allow all people to live well, now and in the future.
What are some ways that people can undermine the WRAP system
Its not probable that all individuals who work for them are ethical and honest
what is fair trade
a term used to describe trade systems and regulations that are less discriminatory in benefits among rich and poor, large and small, developed and developing countries
What are ethics and morals?
ethics are moral codes for individuals, morals are the accepted standards of right and wrong in society
What are human rights?
rights inherent to all human beings, whatever our nationality, place of residence, sex, national or ethnic origin, colour, religion, language, or any other status
Does everyone have equal human rights? Why or why not?
no, because some populations are vulnerable to exploitation
What is labor exploitation?
when vulnerable populations are taken advantage of for their labour
what is poverty
lack of enough income and or resources to satisfy minimum needs
What is the HDI?
Human Development Index is an indicator of well-being incorporating measures of gross domestic product, life expectancy at birth and adult literacy
What is a living wage?
The level of income that covers a families basic needs including the maintenance of good health
is income equal between genders?
no
who typically earns more?
men
why did men lose more jobs in 2009?
men are paid more so in the economic downturn they would be fired because a woman made less doing the same job
is it estimated that how many children work around the world
128 million
how many people are in some form of forced labor
12 million
what is a union
a group of workers who collectively act for specific issues
What is a labor union?
whole idea: empower vulnerable workers
what do strikes do?
gain attention,
what is the AFL-CIO
The American federation of labor and congress of industrial organisations is an association of national and international unions,
What is the ILGWU?
nternational ladies’ garment workers union
formed as a result of triangle shirt waist fire, first union to have mostly women members, formed in 1900
Briefly describe the history of textile/apparel labor/trade unions. (know the general phases described on page 125 in the text)
There were five phases. The organizational phase from 1880-1917, the growth phase 1923-1958, the mergers begin, between 1965- 1979 and then the focus turns to recent immigrants and exporting countries, 1986-1995, and finally the social activism phase from 1996 to 2009
phases and changes over time depending on what was happening at the time
What is a social activist?
A social activist is a person or organization that endorses a doctorine or policy of taking positive direct action to achieve an end especially a political or social end
What happened in 1998 during the social activism phase?
College students many of who did summer internships with UNITE! Founded the students against sweatshops to push their universities to take responsibility for working conditions for people around the world who make $2.5 billion of college logo apparel a year
what is collective bargining
the bargaining done by unions
