Understanding Political Positioning's Impact on Apparel Trade - Prof. Patrick Yanez, Study notes of International Business

Download Understanding Political Positioning's Impact on Apparel Trade - Prof. Patrick Yanez and more Study notes International Business in PDF only on Docsity! IN312 International Trade Professor Patrick Yanez/FIT Pat Yanez/FIT IN312 International Trade Department of International Trade & Marketing (ITM) http://www3.FITnyc.edu/ITM Chapter 6 Politics & Political Positioning Pat Yanez/FIT Politics and Apparel Trade • Political manipulation of trade relationships • “Unfair Competition” laws to protect from: – Subsidies and Price Support Programs – Production Subsidies – Dumping (“import surges”) • Remedies: countervaling duties, trade embargoes • Government “red tape” as a trade barrier • Vehicles for political positioning: – Labor unions – Trade associations Pat Yanez/FIT U.S. Textile Trade Decision-Making Source: Going Global, Kunz & Garner, 2007. Page 145 Pat Yanez/FIT Textile/Apparel (T&A) Trade Politics U.S. Textile Manufacturing U.S. Apparel Manufacturing U.S. T&A Retailing 1950’s Production mostly for domestic markets Japan becomes serious competitor 1960’s New competitors: India, Turkey, Taiwan, Hong Kong Short & Long term arrangements 1970’s New Competitors: South Korea, Mexico Multifiber Arrangement Increasing int’l buying 1980’s Trade protection with fabric forward rules Stronger MFA Int’l marketing Early sourcing 1990’s Trade protection with yarn forward rules US-Canada FTA Int’l sourcing Mostly sourcing Free trade advocate 2000’s Moving toward int’l production Seeking Freer trade Social Responsibility Mature sourcing Multinational 2010’s Free trade? Anti-Dumping? Free trade? Free trade? Mostly local sourcing Some Int’l buying Source: Adapted by P. Yanez from “Going Global”, Kunz & Garner, 2007. Page 150