Trade and Development

This video provides a great summary of what we discussed in class on trade and development. Please keep in mind that:

  • Textile and apparel industry (T&A) plays a critical role in generating economic growth, reducing poverty and promoting human development both in history and today. This is why T&A remains a critical sector in the 21st global economy, even though people may think clothing is such a “simple” product.
  • Apparel sourcing is far more than just about how to get the product at the lowest price. Throughout the supply chain, sourcing decisions and practices are closely connected with many people’s destiny in the world, especially those living in the developing countries. As future professionals working in the fashion apparel industry, please think about your impact and responsibilities.

Please feel free to share any comments and thoughts on the video

Author: Sheng Lu

Professor @ University of Delaware

17 thoughts on “Trade and Development”

  1. After watching this video I think it becomes apparent that helping developing countries does not simply mean setting up factories there and employing workers. Helping developing countries means giving them the tools they need to grow and providing them with a voice. This platform allows these countries to develop and will hopefully lead to them becoming integral parts of the global marketplace. Aid for Trade is looking to help developing countries gain their independence. As someone entering the workplace, even though I may not be involved in this realm of the industry I think there is value in supporting organizations, like Aid for Trade, that have missions and goals I support.

  2. I think trade is something really important and crucial to keep this world going. As we grow and learn more about trade, I think we’ll hone in on what’s best for where and for who, to eliminate any issues we’re currently facing. There’s always going to be pros and cons to topics like trade, like we discussed in class, but to me I think there are more benefits that outweigh the bad stuff. There will always be winners and losers, but the fact that its creating more jobs in developing countries is something we can’t really get mad about. Developing countries should be given a push into the right direction so they can eventually become developed and really play a big part in trade. Having organizations like Aid for Trade is a great advocate and I think it really helps people who aren’t as educated on trade start to understand it a little bit better because as I look to finish school and enter the workforce, I want to be sure I understand the goals of trade and how it will play a part in whatever my job will be.

  3. I found it very interesting that there is an entire initiative called “Aid For Trade” that specifically looks at ways to reduce poverty by trading with other countries. I have never heard of the initiative before, so I had no idea what it was all about. I think the fact that this program looks into maintaining overall effectiveness and efficiency of trade in every way possible is very important. For example, they understand the importance of maintaining roadways and other transportation lines for trade. They also support small and medium sized enterprises, indicating that they are not only looking to the big businesses that are well-known worldwide, but want to expand trading to other corporations, as well. Overall, I think Aid For Trade is a very important initiative when looking at the benefits that it will bring to those in poverty.

  4. Trade is very important to the world economy so it’s beneficial to assist developing countries in terms of increasing trade and reducing poverty. This can actually result in structural changes to the economy. The video points out that it is not simply trade that reduces poverty but the creation of a good framework as well. There are obvious winners and losers in trade so as future industry professionals it is important that we are aware of the impact that the lack of trade can have on poor countries and ways in which we can assist them to improve the economy in general. Aid for Trade is trying to make this happen through allowing these developing countries to be a part of the process by letting them have a say and tailor the process to fit their needs. These countries need to have a voice and be assisted rather than being pushed around and forced to do what developed countries find best for themselves. Without this kind of assistance, these developed countries may never have a chance.

  5. Trade continues to play a crucial role across the world for the economy. Trade works to help assist developing countries economies especially. Trade helps to crate jobs and increase the economy in developing countries who really need the help. This gives them the tools the need to grow so they can compete in some type of way with developed countries. Without trade many of these under developed countries would be stuck in poverty not being able to give their people the resources they need to build lives for themselves and their families. Trade provides jobs for these countries that would not have these jobs opportunities if trade did not exist. Aid of Trade is a great way to promote trade. It starts the conversation about trade for people who may not know the impacts that trade plays across the globe.

  6. After watching this video and learning about developing countries I have really learned how important it is for developed countries to help the newer countries get on their feet. Developing countries rely on international trade for most of their economic benefits. Most people in developing countries work in factories for their living, so when the factory does well the people and the economy does well. Countries that are already developed have a certain responsibility to help the lesser developed countries so they can contribute to the global industry.

  7. Trade is crucial to the economic success and continued growth of most countries in the world, especially with the increasingly global nature of economics. Trade in the Textile & Apparel sector is even more crucial. To countries that are working on becoming more developed and industrialized, apparel manufacturing is critical in helping their citizens out of poverty by providing countless jobs and opportunities. This leads to a continual growth in their economy and helps them eventually become developed, we have seen this play out in history many times. This is why, as future members of the fashion industry, it is integral that we are educated on the issues that global T&A trade is facing, such as social responsibility issues and unsafe working conditions. We need to help push the industry towards a more sustainable sourcing practice, which will create a snowball effect in making sure the T&A manufacturing sector becomes much safer and continues to encourage economic growth.

  8. I think trade is super important in our lives, both in the T&A industry and many others. This video does a great job at showing how everything is interconnected and how too completely different industries can relate to each other. the T&A industry and trade is super important to developing countries since it helps to boost their economies. It’s stated in the video that there are losers and winners in everything, and that it is up to the winners to help the losers overcome the losses especially since they tend to be LDCs. By helping other countries improve their economies and trading policies it allows for the larger countries to increase and improve their trade. Overall it’s important to keep and eye on all trade, not just T&A since even the slightest in change in policy or agreement can have a ripple effect on many others.

  9. I believe that trade is an extremely important aspect that helps keep the world interconnected. As the United States may seem advanced and successful, it is important for us to keep up trade with other countries in order to stimulate other world economies. In relation to the Textile and Apparel Industry, it is important to note that international trade is what helps keep people in developing countries afloat. In addition, many of the resources we have today may not be readily available to us if it wasn’t for being able to source them.

  10. After watching this video it just furthering puts emphasis on the fat that trade really does drive the economy. Having trade leads to more employment and helping the economy creating growth. It also is important in helping reduce poverty but just having alot of trade doesn’t specifically mean that poverty with decrease. Trade creates winners and losers and using globalization opportunities help decrease poverty through aid for trade. I think that it is crucial for organizations like Aid for Trade to exist because they help take something that is such a huge part of globalization (trade) and figuring out the best ways to help developing countries and groups of people.

    1. well said. PS: I really like one comment made by Michael Froman, former US Trade Representative: done right, trade can be a solution to many problems. Trade is also a development tool. This is particularly the case for the apparel sector.

  11. After watching this video, it’s clear that trade is extremely important for developing countries. Aid for trade is to maximize the positive effects of trade on poverty reduction, and help less developed countries become more capable in participating in international trade. It has the following five categories; Trade policy and regulation, trade development, economic infrastructure, building productive capacity, and trade related adjustment measures. Trade related development policies are very important because with trade there are winners and losers, and their needs to be someone to take care (developed countries) of the losers (developing countries). This video is great at showing all aspects trade that we don’t typically think of and Aid for Trade seems like a great way to help promote trade.

  12. I never really thought before about how trade can create both winners and losers. This being said more capitalized countries may be gaining more from trade than that of countries with more poverty. I think that the Aid to Trade is something that could be very beneficial because it is trying to maximize the positives of trade in countries with more poverty. I found it quite interesting how this aid to trade was being separated into 5 categories: trade policy and regulation, trade development, economic infrastructure, building productive capacity, and trade-related adjustment measures. I think that countries with more poverty deserve more than they are getting because most of the time they are the ones creating majority of the goods and exporting them to more capitalized countries and they aren’t getting the credit that they deserve and I think this aid to trade could be something very beneficial to them.

  13. It is clear, especially after watching this video, that trade truly does play an essential role in the overall well-being of developing countries. Not only are developing countries able to reduce poverty and drive their economies through sourcing to developed countries, but this economic growth in turn allows these countries to show more developed countries that they truly do have a leg to stand on and that, while small, they can and will compete. This also is a way for developing countries to show that developed countries such as the U.S. and the EU do not hold all of the power in all political/economic happenings. Developing countries are able to have their own voices and actually have those voices be heard by the rest of the world.

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