CAFTA and Apparel Trade: Understanding Key Terms and Concepts, Quizzes of Introduction to Business Management

Download CAFTA and Apparel Trade: Understanding Key Terms and Concepts and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 CAFTA DEFINITION 1 Central America Free Trade Agreement: between US, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragu free from tariffs or quantitative limits TERM 2 Yarn-forward test DEFINITION 2 Each step of apparel production for yarn being spun must take place in one of the member countries of CAFTA TERM 3 Fabric-forward rule DEFINITION 3 For brassieres and bozer shorts, the yarn may be sourced from Asia, but must be shipped and the resulting fabric must be completed in a CAFTA country TERM 4 Fiber-forward rule DEFINITION 4 US fabric manufacturer who produces t-shirt fabric must use American-grown cotton in order to retain duty free status TERM 5 Pocketing Provisions DEFINITION 5 requires that pocketing fabrics also meet the yarn-forward origination requirements TERM 6 Harmonized tariff schedule DEFINITION 6 an internationally standardized system of names and numbers for classifying traded products which came into effect in 1988, developed and maintained by the World Customs Organization (WCO) Women's girl's' overcoats, car coats, capes, cloaks, anoraks, windbreakers, and similar articles, knitted or crocheted, of man-made fiber, containing less than 25% leather by weight and containing 23% or less wool or fine animal hair TERM 7 Compensation principle, TAA DEFINITION 7 Trade Adjustment assistance programs, taxing millions who have benefited from cheaper t-shirts and funneling the compensation to the thousands who have lost their jobs, we can both gain economy-wide benefits free trade and at the same time mitigate the negative local effects TERM 8 Multi-Fibre Arrangement (MFA) DEFINITION 8 set quantitative limits or quotas on clothing and textile imports from dozens of countries since 1974 TERM 9 Strategic Sourcing DEFINITION 9 making trade offs on price, quality, time to market, reliability, and special trade advantages so that the international supply chain is optimized TERM 10 Social and Environmental compliance DEFINITION 10 the monitoring of international suppliers in the areas of labor, environment, and social standards