Tag: Globalization

FASH455 Debate: Is the U.S. Textile Manufacturing Sector a Winner or Loser of Globalization and International Trade?

(note: the following comments are from students in FASH455 based on the video “Textile Manufacturing in America, post-globalisation”

Argument: The U.S. textile manufacturing industry has been a winner of globalization

Comment #1: The video highlighted some of the few remaining textile plants and the cotton refinery’s in the U.S. and how they are taking risks daily to stay afloat with risks of inflation and climate change. However, for these American companies to stay afloat, they must participate in globalization themselves. The video mentioned how these factories were using Swiss and German dying machines to make production more efficient. For these onshore jobs to stay alive, they have to now utilize globalized information and technology to stay successful. 

Comment #2: Deeper down, the US textile sector seems to be winning in the long run. The squeeze that globalization has placed on them has allowed for innovation within the industry as they fight to stay relevant and compete with overseas goods. Operational slack such as high turnover jobs have been eliminated with automation, and US manufacturers gained a new branding niche that overseas companies do not: a US “personal touch.” Consumers may now be more willing to pay more for a garment just because it says it is made in the USA. USA-made clothing may now be perceived as higher quality and more scarce. The sentiment towards US-made goods and their quality could enact change to reduce overseas reliance, which is a win for US manufacturing in the long run. Additionally, globalization expands the export market for the US textile manufacturing sector.

Argument: the U.S. textile manufacturing industry has been a loser of globalization

Comment #3: According to the video, the U.S. textile manufacturing sector is a loser in globalization and international trade.  Robert Lighthizer, a former U.S. trade representative, believes the drive to globalization saw the United States effectively giving away its own prosperity and success.  He explains the effects of trade deals on jobs, illustrating how the U.S. would place most of its focus on service sector jobs and outsource its industrial base.  However, this resulted in the loss of roughly 6 million jobs and 60,000 factories, destroying many communities all across the country and causing a lack of diversity in the job economy. 

Comment #4: I think the US is a loser of globalization and international trade because they rely on other countries for their cheap goods and services. When I look at clothing tags, I rarely see them made in the US nowadays. Again, this is because the US being dependent on other countries due to unbeatable costs. I also think since we rely so heavily on other countries, it has contributed to job displacement.

Comment #5: The US textile manufacturing sector is a loser of globalization and international trade. Cotton production in the US is beneficial to the communities it exists in. However, these companies must fight against a strong dollar, competitors in China who do not always abide by the same regulations as US companies, and use cheap labor. When China entered the WTO, the US suffered greatly. Many textile factories in the US have closed, disrupting the entire community.

Comment #6: Overall, I believe that the U.S. textile manufacturing industry is a loser of globalization and international trade, mostly due to the competition from overseas. This competition includes more manufacturers from other countries, but also the competition of pricing since other oversea manufacturers are able to sell their cotton/textile materials at a lower price. Since the U.S. struggles to compete with these lower prices, they are forced to look for another way to have a competitive advantage in the textile manufacturing sector, such as lean manufacturing and technology improvements. At Carolina Cotton Works, Bryan Ashby shares how they have increased efficiency and use high-quality machines (note: imported) for their products. Although this sounds great, this also means that there are fewer workers.  

Comment #7: I think the US textile manufacturing sector was a loser of globalization and international trade because big companies were using other countries for their sourcing and manufacturing. This was because it was much cheaper compared to the United States. In doing this, it declined the need for textile manufacturing jobs in the United States.

Comment #8: Globalization creates a trade dependence on imports. It’s important we don’t depend on things for when things happen that we can’t predict like the pandemic where we can’t import anymore. Since there was a lack of local textile manufacturing and sourcing in the United States compared to what was being imported, there was less of a chance for technological advances and improvement in the United States textile manufacturing sector. Post Globalization however may be the chance for the United States to bring back the textile manufacturing sector momentum. I think this because the United States has seen the result of heavily relying on other countries for their cheap labor/sources and this could add extra motivation for companies to want to figure out better alternatives in manufacturing in their own country.

Comment #9: I think currently the US is a loser to globalization only because brands want to get the product for cheap. I think brands think that would create more profit that way. However, I do believe we could get to a future where more things would be created in the US and wouldn’t have to pay that much in tariffs and other external prices. I think it would help boost people to work more. I think people are worried about making things in our country because of the relations we have with other countries.

Comment #10: U.S. Businesses are now focusing on the cheapest way to do everything instead of thinking about creating good jobs for their working community with fair pay. The U.S. is losing jobs, factories, communities, etc. in efforts to help other countries build themselves up through globalization. It is time for the U.S. to make some changes and look out for our own country and people.

Discussion questions:

Do you agree or disagree with any particular argument above? Any follow-up comments on the impact of globalization on the US textile manufacturing sector? What should government do with trade given the debates? Please feel free to share any additional thoughts.

Is Free Trade Worth the Cost? (Video discussion)

For FASH455 students: Please share your reflections on the video regarding the free trade debate. You can focus on analyzing 1-2 specific debates raised in the video (e.g., comparing the arguments from both sides) and then share your thoughts. Please do not simply state your “opinion,” but use examples, statistics, or trade theories we learned to support your viewpoint.

Further reading: Is Free Trade Worth the Cost?

Video Discussion: Textile Manufacturing in America, post-globalisation

Discussion questions:

#1. What makes globalization and trade controversial and debatable? Please use 1-2 examples from the video to illustrate your point.

#2. Are classic trade theories (e.g., comparative advantage) still relevant or outdated in the 21st century? Why? Please share your thoughts based on the video and the figures.

#3. Based on the video and the figures above, is the US textile manufacturing sector a winner or loser of globalization and international trade? Why?

#4. Related to question #3, does the future prosperity of the US textile manufacturing sector need globalization or de-globalization? What’s your vision?

#5. Take the following poll (anonymous) and share your reflections.

#6. Should the government’s trade policy consider non-economic factors such as national security and geopolitics? What should be the line between promoting “fair trade” and “trade protectionism”? What’s your view?

#7. Is there anything else you find interesting/intriguing/thought-provoking in the video? Why?

(Welcome to our online discussion. For students in FASH455, please address at least two questions and mention the question number (#) in your reply)

Globalization and Primark’s Sourcing Model: Discussion Questions from Students in FASH455

Primark’s apparel sourcing base (Data source: https://openapparel.org/)

Discussion questions:

Question #1: Based on the reading about Primark’s global sourcing, how to understand the complex social, economic, and political factors involved in apparel trade and sourcing today?

Question #2: Primark sources from 28 countries work with around 928 contracted factories. What are the pros and cons of using such a diverse sourcing base?

Question #3: Near-shoring, meaning bringing manufacturing closer to home, is growing in popularity. Does it mean globalization is “in retreat”? What is your view?

Question #4:  In the current state of the fashion industry, ethical labor laws are really important, especially to consumers. For example, activists are protesting Pretty Little Thing in London to protest the low wages paid to garment workers at the factories that Pretty Little Thing sources from. With this in mind, do you think that it would be wise for Primark to look for sourcing opportunities outside of Asia? Or do you believe Primark’s Ethical Trade and Environmental Sustainability team is sufficient to ensure ethical and sustainable sourcing?

Question #5:  As of May 2021, Primark has the most workers in its Asian factories. Should we still call Primark an EU company? Does a company’s national identity still matter in today’s globalized world?

 (Welcome to our online discussion. For students in FASH455, please address at least two questions and mention the question number (#) in your reply)

Barcelona Fashion Summit 2022 Exclusive Interview: Apparel Sourcing, Trade, and Globalization

Rethink Globalization amid the Pandemic and the U.S.-China Tariff War–Discussion Questions from Students in FASH455

#1: Is the sole benefit of globalization helping us get cheaper products? How to convince US garment workers who lost their jobs because of increased import competition that they benefit from globalization also?

#2 How to explain the phenomenon that US apparel imports from China continue to rise despite the tariff war? Do you think the tariff war is a wrong strategy or a good strategy implemented at the wrong time given COVID?

#2: In the class, we mentioned that major driving forces of globalization include economic growth, lowered trade and investment barriers, and technology advancement. What will be the primary driving forces of globalization or deglobalization in the post-COVID world, and why?

#3: Based on the reading “U.S.-China Trade War Still Hurting Ohio Family-Owned Business,” what results of the US-China tariff war are expected and unexpected?  What is your recommendation for the Biden administration regarding the Section 301 tariff exclusion process and why?

#4: We say textile and apparel is a global sector. How does the US-China tariff war affect textile and apparel producers and companies in other parts of the world? Why?

#5: From this week’s readings, why do we say textile and apparel trade and sourcing involve economic, social, and political factors and implications? Please provide 1-2 specific examples from the articles to support your viewpoints.

(Welcome to our online discussion. For students in FASH455, please address at least two questions and mention the question number (#) in your reply)

Globalization and Its Implications for the Fashion Industry—Discussion Questions from Students in FASH455

Sourcing map: North Face–Men’s Thermoball Eco Hoodie

#1 Why or why not do you think VF Corporation should de-globalize its supply chain—for example, bringing more sourcing and production back to the United States?

#2 Given such a globalized operation, should we still call VF Corporation an American company? Also, does the label “Made in ___” still matter today?

#3 Is the sole benefit of globalization helping us get cheaper products? How to convince US garment workers who lost their jobs because of increased import competition that they benefit from globalization also?

#4 How has COVID-19 changed your understanding of the benefits, costs, and debates on globalization? Do we still need globalization in a post-COVID world? Why?

#5 Throughout history, globalization has been viewed as a two-sided debate with social groups weighing its benefits and negative costs.  With the emergence of COVID-19, how do you think certain social groups’ opinions towards globalization will change?

(Welcome to our online discussion. For students in FASH455, please address at least two questions and mention the question number (#) in your reply)

Brexit and the Global Fashion Industry: Discussion Questions from FASH455

skynews-brexit-westminster_4764028

#1 To which extent should globalization be responsible for Brexit? Does Brexit imply globalization is in retreat? Why or why not?

#2 Why do you think the fashion industry is a stakeholder of “Brexit”? It is said that “some of the world’s poorest countries may end up the victims of Brexit.” Why is that?

#3 The article mentioned the possibility of London losing its reputation as a global fashion capital because of Brexit. What is your evaluation?

#4 Should the UK fashion industry vote for Brexit? Why or why not?

#5 Overall, from the case of Brexit, how do you understand that textile and apparel is a global sector?

[For FASH455: 1) Please mention the question number in your comments; 2) Please address at least TWO questions in your comments]

[Discussion for this post is closed]

Trade 2030: The Future of World Trade


A group of eminent panelists will bring their experience on how digital technologies are changing international trade and how international trade cooperation can help governments reap the benefits and address the challenges of digital trade.

Speakers/Panalists:

  • Roberto Azevêdo, Director-General, World Trade Organization
  • Abdoullah Cisse, Professeur-Avocat, Carapaces Stratégies & Conformités
  • Caroline Freund, Director, Macroeconomics, Trade, and Investment Climate, World Bank
  • Susan Lund, Partner, McKinsey Global Institute

The Globotics Upheaval: Globalization, Robotics, and the Future of Work

Key points

  • “Globotics” or Globalization + Artificial intelligence (AI) is changing the world. Globotics means globalization mixed with new kinds of robotics, from artificial intelligence to technologies that make it easier to outsource services jobs. Particularly, globotics is injecting pressure into our socio-politico-economic system (via job displacement) faster than our system can absorb it (via job replacement). Overall, AI and robots will take jobs — but make the world better.
  • Past globalization and automation were mostly about goods— making them and shipping them. However, the era of globotics is about service-sector automation—driven by information and data.
  • The competition from software robots and telemigrants will seem monstrously unfair to white collar works who lost their jobs. When white-collar workers start sharing the same pain [as blue-collar workers], some sort of backlash is inevitable.
  • As technologies reduce the need for face-to-face contact, some developing nations stand to benefit. For example, India, with its sizeable English-speaking population and armies of techies, could become a hub for services outsourcing, just as China was for manufacturing.
  • Future jobs (that are left) will be more human and involve more face-to-face contact since software robots and tele-migrants will do everything else. In other words, the future economy will be more local and more human.
  • The problem is the short-term. In the era of globotics, it is important to make the rapid job displacement politically acceptable to a majority of voters. Governments may set the policy goal to protect workers, not jobs.

Is the US Trade Deficit a Problem?

united-states-balance-of-trade

Do you think the U.S. trade deficit is a problem or not? Please feel free to share your thoughts based on our lectures, the video above as well as a recent op-ed written by Peter Navarro (Director of the White House National Trade Council) for the Wall Street Journal. 

 

%d bloggers like this: