TMD 402H - Globalization in the Textile and Apparel Complex

Globalization and Economics: Issues and Trends
Art Mead, Professor, Economics, URI

Summary by Jamie Kurtz

Due to globalization, the apparel industry is in the midst of a dramatic change. Many foreign countries thrive on the import/export business of apparel goods, and their income depends on such commodities. Bangladesh and Sri Lanka are prime examples of economies that flourish due to the interdependence of world markets in apparel sales. The idea of organizing societies into a market system has lead to progress and growth for many countries. This concept  will prove essential in the future by solidifying financial systems and lending help to desperately poor countries.

The evolution of globalization has proven itself beneficial for many reasons. International trade helps relationships between countries and decreases the chance of conflict if a codependence is exhibited. The circulation of money is a benefit of globalization that is apparent in the apparel industry. Many items such as footwear, tee shirts, undergarments, and even men's sports coats are either constructed outside of the U.S. or are made from materials purchased outside the U.S. Cheap labor is easily obtained in other countries; therefore items are shipped overseas to be constructed, returned, then sold in our apparel market. The U.S. imports fine wools from Australia and New Zealand and linen from Belgium and France. These countries have a greater supply of such fibers and sell them at a reasonable price. It makes more sense for the U.S. to import these fibers rather than to attempt to grow them. Such countries have a comparative advantage in the sales of these fibers. The U.S., on the other hand, can export items that are not available in other countries. These occurrences help to secure an international financial system.  

Through  trade, countries have the chance to develop financially and strengthen their economy. Unfortunately for the U.S., global trade sometimes hurts local laborers and takes their livelihoods away from them, because cheaper labor is abundant elsewhere. However, the positives outweigh the negatives, as trade is essential for the U. S. economy. Most cars and computers are foreign-made, as is the majority of apparel. Cross-fertilization of ideas, in the form of trade, has proven successful in breeding wealth and peace. Countries are less likely to go to war with a country it conducts business with. Tariffs could easily sky rocket and goods could be barred from entering a country. If a country depends greatly on the sales of its apparel industry in that of another country it is a drastic measures to stop trade. Seventy-five percent of Bangladesh's income is from apparel manufacturing. If conflict arose, trade would be at risk, dramatically affecting the economic state of the country.  Many forms of progress are gained through the globalization of trade. 

Inequity is abundant in many of the world's countries. In order to change the pace of poverty, countries with poor economics need to open their borders and connect with other countries. Too many people are desperately poor, and the adoption of globalization could help. Many have set the example and the apparel industry is an ideal blueprint to follow. If other countries can collect their abundant resources and offer them in an international market, a new economic flow can be achieved.

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