The Fashion Business · PDF fileThe Fashion Business 3 Impact on Global Economy Globalization...
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The Fashion Business
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The Fashion Business
2
Impact on Global Economy
Changes in government policies and new trends in international trade have caused the market for fashion goods to increase.
Section 3.2
The Fashion Business
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Impact on Global Economy
Globalization allows citizens of most countries to shop and enjoy products from around the world.
globalization the increasing integration of the world economy
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The Fashion Business
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Impact on Global Economy
Globalization has created increased competition between countries in the manufacturing sector of fashion. Labor is a major component of the cost of production for fashion products.
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The Fashion Business
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The Balance of Trade
Trade involves imports and exports.
imports goods that come into a country from foreign sources or goods that a country buys from other countries
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exports goods that a country sends to a foreign source or goods that a country sells to other countries
The Balance of Trade
Section 3.2
Trade Deficit
Trade Surplus
Balance of Trade
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Trade Agreements and Restrictions
Free trade exists when a government allows products to move freely across its borders.
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Trade Agreements and Restrictions
The North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada is an example of a free-trade agreement.
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The World Trade Organization (WTO) is an international organization that promotes and enforces trade laws and regulations.
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Globalization and America
The globalization of the fashion industry is evident in the United States.
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Givenchy of France has stores in New York City, Europe, the Middle East, and Asia. Escada of Germany has shops in Las Vegas, Nevada. Benetton of Italy has stores in the United States and India. Gap stores are in the United States, Canada, France, and Germany.
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International Fashions
Advances in technology have increased communication around the world. Producers, designers, and retail buyers cover the globe in search of new products.
Section 3.2
International Fashions
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For sale in a shop on
Rodeo Drive in
Beverly Hills
Produced in China with fabric from India
Modeled on the runways in Milan, Italy,
and Paris, France
Purchased by a customer in New York City to wear at a trendy party
Designed by a designer in France
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The Fashion Business
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Impact on Domestic Economy
According to the American Textile Manufacturers Institute (ATMI), U.S. consumers spend $275 billion every year on apparel.
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3 billion slacks or
pants
5.7 billion shirts or blouses
370 million sweaters
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Impact on Domestic Economy
Approximately 1 million employees work in the U.S. textile segment, representing 6 percent of all U.S. manufacturing industries. These industries support 2.75 million jobs in the textile industry.
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The Fashion Business
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Impact on Domestic Economy
Issues in the textile industry include:
Section 3.2
Declining use of domestically grown cotton affecting the U.S. cotton industry Rise of global competition