The Advantages and Disadvantages of China’s Apparel Manufacturing Industry

In: Social Issues

Submitted By achardin
Words 905
Pages 4
Abigail Hardin
CTD 447 Tong
Book Report 2
25 October 2011
Rivoli, R. (2009) (2nd Edition). The Travels of a T-Shirt in the Global Economy: An Economist Examines the Markets, Powers, and Politics of World Trade. Hoboken, NJ: John Wiley & Sons.

The Advantages and Disadvantages of China’s Apparel Manufacturing Industry

China leads in the apparel manufacturing industry like the United States leads in cotton production. However, China’s dominance is much different than that of the United States. China is competitive in the apparel manufacturing industry with its quick and cheap labor. However, their low price of production comes at a high price of workers’ quality of life. Thus, China’s dominance has mainly been a disadvantage to workers, yet the hardships within China’s apparel manufacturing industry have surprisingly resulted in advantages. In order to understand the advantages of China’s apparel manufacturing, one must consider the history of China, the workers’ characteristics, and the positive effects of global trade. Historically, China was not expected to dominate the apparel manufacturing industry. Instead, Chinese families worked slowly, yet efficiently to produce and create clothing. However, Britain surpassed the Chinese with the Industrial Revolution. Inventions like the spinning jenny spurred apparel manufacturing. New England slyly acquired Britain’s patented technology and spearheaded apparel manufacturing. Later, the South dominated manufacturing because of slavery and sharecroppers. However, Southern farmers exported to Japan, who had cheaper labor. Soon, China, Taiwan, and Korea surpassed Japan. “Today, China is not only the largest buyer of American cotton, it is also projected to soon produce more than forty percent of the world’s cotton textiles” (78). The reason China attracts sourcing is because Americans, as well as other countries,…...

Similar Documents

Advantage & Disadvantages of Minimum Wage

...Introduction Minimum wage refers to the lowest hourly, daily or monthly wage an employee is legally entitled to when working. Minimum wage is in effect in a range of different jurisdictions with differences in the views on the advantages and disadvantages being disputed by people. Supporters claim minimum wage increases the standard of living for workers whilst reducing poverty. Opposite views are that if it is high enough to be effective then it increases unemployment, particularly among workers who are inexperienced or handicap, thus harming the lesser skilled workers to benefit the better skilled workers The effect on employment rates due to minimum wage rates is a highly contested policy within economics. The introduction of minimum wage into the market can lead to competitive employers cutting employment; this depends on the rate of the wage rises require to comply with the current minimum wage according to the “standard textbook model”. Other models have also been suggested in which a decline in the employment rate may not occur and in fact employment may increase. During my research I found a wide range of literature on minimum wages, particularly on the effects of a minimum wage policy in place. Though a lot of informative research was concluding I also found the argument between weather the effects and positive of negative on employment, both sides of the disagreement present a large amount of information supporting the theories. Research before the 1990’s......

Words: 2611 - Pages: 11

Development of Apparel Industry in Bangladesh

...Development of Apparel Industry in Bangladesh Garment Industry Large-scale production of readymade garments (RMG) in organised factories is a relatively new phenomenon in Bangladesh. Until early sixties, individual tailors made garments as per specifications provided by individual customers who supplied the fabrics. The domestic market for readymade garment, excepting children wears and men's knit underwear (genji) was virtually non-existent in Bangladesh until the sixties. Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although, the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. In 1999, the industry employed directly more than 1.4 million workers, about 80% of whom were female. With the growth of RMG industry, linkage industries supplying fabrics, yarns, accessories, packaging materials, etc. have also expanded. In addition, demand for services like transportation, banking, shipping and insurance has increased. All these have created additional employment. The total indirect employment created by the RMG industry in Bangladesh is estimated to be some 200,000 workers. In addition to its economic contribution, the expansion of the RMG industry has caused noticeable social changes by bringing more than 1.12 million...

Words: 13376 - Pages: 54

China's Competitive Advantages

...China’s Competitive Advantage over the Philippines China has the world's second largest economy by nominal GDP and by purchasing power parity after the United States and though the Philippine economy has doing surprisingly well over last year, China has long been out performing us. First reason is due to the sheer number of its’ labor force, the country's population of 1.3 billion moves China to the top ranks of economic powers. Although the cost of labor has doubled since the year 2000, the output and productivity has increased almost fourfold compared to the productivity of the Philippines which has only risen 2.3 percent the past decade. Recently, the economic expansion due to the abundant supply of its labor force is being threatened by the one-child policy and ageing residents but for now it remains to be the go to place for cheap and consistent cost labor. Second, adding to cheap labor is frugal manufacturing, it now accounts for a fifth of global manufacturing. Its factories have made so much, so cheaply that they have curbed inflation in many of its trading partners. Chinese firms are often quite innovative in reducing costs by redesigning manufacturing processes, substituting cheaper “good enough” materials, and using simpler off-the-shelf components. Adding to that, China's supply chain is sophisticated and supple. That the right way to measure manufacturing competitiveness is not by comparing labour costs alone, but by comparing entire supply chains. Even if......

Words: 741 - Pages: 3

Scm in Textile- Apparel Industry

...Table of Contents Introduction 2 1. Supply Chain Management of Textile Industry 3 2. Textile Industry and flow of Product and Information 4 3. Up Stream Operation of SCM in Textile Industry 5 3.1 Raw Fiber: 5 3.2 Yarn 6 3.3 Grey Fabric 6 3.4 Finished Fabric 6 4. Demand forecasting in upstream Supply chain management 7 5. Bullwhip effect 8 5.1 Causes of the Bullwhip Effect 9 5.1. a Demand Forecast Updating 9 5.1. b Order Batching 9 5.1. c Price Fluctuation 10 5.1. d Rationing and Shortage Gaming 10 6. Supply chain decisions 11 6.1 Location decisions 11 6.2 Production decisions 11 6.3 Inventory decisions 12 6.4 Transportation decisions 12 7. Vertical Integrated Supply Chain Management in Textile 13 Bibliography 14 Introduction Supply chain management is the term used to describe the management of the flow of materials, information, and funds across the entire supply chain, from suppliers to component producers to final assemblers (or manufacturers) to distribution (wholesalers, warehouses and retailers), and ultimately to the consumer. There are several reasons behind the increased interest in the management of supply chains after the 1990s. Firstly, companies have been moving away from vertical integration, and moving towards specialization, thus having the need to deal with, and rely on, more outside sources. In order to reduce production costs, most textile firms have already outsourced production of their......

Words: 2616 - Pages: 11

Advantages & Disadvantages of Lean Production

...Advantages & Disadvantages of Lean Production by Scott Shpak, Demand Media Lean production originated in the auto industry to address waste and efficiency. Related Articles Advantages & Disadvantages of Licensing the Rights to the Company's Production Process What Emphasis if Any Should Be Placed on Lean Production? Advantages and Disadvantages of Opening a Production Facility in a Foreign Country Advantages and Disadvantages of Market and Product Development Strategies The Advantages & Disadvantages of the Beef Production Industry What Are the Advantages & Disadvantages for Every Company Becoming a Customer-Focused Business? Lean philosophy centers on the elimination of waste in all forms in the workplace. Specific lean methods include just-in-time inventory management, Kanban scheduling systems, 5S workplace organization, Scrum and other "agile" software development methodologies. Many of these concepts and systems were pioneered by automobile manufacturer Toyota dating back to the 1940s and were subsequently adopted as best practices in many industries beyond automotive production. Applying these principles to your production has the potential for both improved profitability and increased complexity. Sponsored Link Lean Manufacturing Implement Lean Manufacturing, Visual Management, 5S & Types of Waste Lean principles aim to minimize all forms of waste, from sources as varied as material defects to worker ergonomics. Many......

Words: 768 - Pages: 4

Apparel Industry Australia

...December 2009 The Apparel Industry in Australia1 1. 2. 3. 4. 5. 1. Executive Summary ................................................................................................................ 1 Market Entry............................................................................................................................ 1 Retail Channels....................................................................................................................... 4 Distribution Channels.............................................................................................................. 8 Market Resources................................................................................................................... 9 Executive Summary The Australian apparel market can be described as relatively small, competitive and well-serviced by domestic companies. Nonetheless, this market presents opportunities to Canadian business. Canada and Australia share similar cultures and lifestyle, for example, sports and the outdoors. This translates into similar fashion tastes and trends. Facing increasing pressure from inexpensive imports, competitive department stores and decreasing prices, Australian retailers are looking for new ways to compete. Some have differentiated by specializing and offering only a particular type of product, such as sportswear. Others sell exclusive product that cannot be found elsewhere. Most have moved to the mid- to high-end of the......

Words: 4702 - Pages: 19

Advantage and Disadvantages

...particular discovery or a particular scientist. the relationship Between indigenous knowledge and life sciences All knowledge stems from views on how the world works. One of the differences between modern science (and technology) and traditional, indigenous knowledge systems is that they have their origins in different world views. Learners should understand the different cultural contexts in which indigenous knowledge systems were developed. The examples of indigenous knowledge that are selected for study should, as far as possible, reflect different South African cultural groups. They should also link directly to specific areas in the Life Sciences subject content. the Value and application of life sciences knowledge in the industry in respect of Career opportunities and in everyday life Knowledge of Life Sciences is applied in and relevant to various aspects of society. Examples should be relevant to the subject content that learners are dealing with at a particular time. There are career opportunities in the field of socio-biology and animal behaviour, plant pathology, game management, environmental impact studies, preservation CAPS 17 LIFE SCIENCES GRADES 10-12 of biodiversity, palaeontology, palaeoanthropology, agriculture, horticulture, environmental law, science journalism, biotechnology, genetic engineering, and many others. Moreover, although learners should be made aware of career choices, it is not necessary to discuss or teach these in great......

Words: 21816 - Pages: 88

Intensive Situation of Manufacturing Industry in China

...Intensive situation of manufacturing industry in china China is the largest exporter and the second largest importer in the world. There became the largest manufacturing country in the world, overtaking the U.S. in 2010. This has raised debate that whether China has lost edge as world’s factory. In recent years, the average income in China has steadily gone up as China’s labor cost has grown by over 60 percent since 2009. However, Vietnam’s labor cost is 40 percent of that in China, while in Bangladesh and Myanmar labor costs are as little as one-fifth of China’s labor cost.9 Other factors are also contributing to foreign manufacturers’ profit decline in China, such as: the appreciation of the Renminbi, variability of various local tax rates, stricter regulations on environment protection, as well as government’s policies towards a more service-based economy. In addition to cheaper labor cost, some Southeast Asian countries have put more effort into attracting foreign investment, such as lowering or exempting import tariffs on equipment required by manufacturing activities. However, unsettled political situations, undeveloped infrastructure, unskilled workers, incomplete industry chain systems, and a smaller domestic market in the Southeast Asian countries remain the biggest concerns for foreign investors. Throughout the years, China is still remains competitive manufacturing base while some foreign manufacturers moved out and relocated to Southeast Asia. Many foreign......

Words: 4004 - Pages: 17

Advantages and Disadvantages of Countertrade

...Advantages and Disadvantages of Countertrade Countertrade is an umbrella term used to describe many different types of transactions each in “which the seller provides a buyer with goods or services and promises in return to purchase goods or services from the buyer”. It may or may not involve the use of currency, as in barter. By far the largest indirect method of exporting is countertrade. Competitive intensity means more and more investment in marketing. In this situation the organization may expand operations by operating in markets where competition is less intense but currency based exchange is not possible. Also, countries may wish to trade in spite of the degree of competition, but currency again is a problem. Countertrade can also be used to stimulate home industries or where raw materials are in short supply. It can, also, give a basis for reciprocal trade. Countertrade can take many forms. These are: • Barter- is the direct exchange of one good for another. It requires a double coincidence of wants. Barter trade can take a number of formats. Simple barter is the least complex and oldest form of bilateral, non – monetarised trade. Often it is called "straight", "classical" or "pure" barter. • A clearinghouse arrangement- is a form of barter in which the traders agree to buy a certain amount of goods from each other. They set up accounts with each other that are debited and credited as needed. At the maturity of the arrangement, the......

Words: 879 - Pages: 4

The Advantage and Disadvantage of Technology - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Computers and Technology Science and Technology: Advantages and Disadvantages In: Computers and Technology Science and Technology: Advantages and Disadvantages Science and Technology: Advantages and Disadvantages Technology is a very broad concept and is used to refer to several braches of science and study. There are many advantages due to science and technology but there are also many disadvantages. Science and technology have a great impact on everyday life and several people thrive to continue discovering the best technologies. It has brought many advantages in healthcare, medicine, education, and communication to help improve the life of mankind, but mankind could also be too dependent on technology and could fall into the wrong hands. There are obviously more advantages than disadvantages. One of the biggest discoveries in science and technology is the mobile telephone. With phones we are able to talk to any person in the world, we can now also see the person we are talking to. Video calling is very popular now among companies. With the invention of video calling companies can now connect to other countries and expand their companies, which mean more jobs for the poor and unemployed. With all the new smartphones and programs on cell phones people can now conduct business anywhere and anytime. Also, cell......

Words: 603 - Pages: 3

Advantages and Disadvantages of Global Integration

...GLOBAL INTEGRATION: ADVANTAGES AND DISADVANTAGES Globalization is the process by which different societies, cultures, and regional economies integrate through a worldwide network of political ideas through transportation, communication, and trade. Generally, globalization has affected many nations in various ways; economically, politically, and socially. It is a term that refers to the fast integration and interdependence of various nations, which shapes the world affairs on a global level. Globalization has affected the products people consume, the environment, culture, security, and idea exchange between different countries. There are many factors that lead to the speedy globalization trends. This acceleration in globalization can be attributed to an increase in free-trade activities, emerging technologies, or the worldwide acceptance of markets. Globalization has affected cultures and economies on matters dealing with environmental destruction and availability of the already limited resources. Globalization has had diverse implications for environmental issues such as, pollution, deforestation, water resources climate change, and biodiversity loss. The rampant environmental problems have become the subject of international efforts because the effects are felt globally. The negative impacts of globalization focus on the destruction on the environment that is export-oriented. On the other hand, the positive impacts are the multinational companies research into technology...

Words: 1485 - Pages: 6

Advantages &Disadvantages

...Advantages and Disadvantages of Convention and Concept Advantages of accounting concepts, conventions and regulations. There are many advantages that accounting concepts have on financial statements. Four important accounting concepts that underpin the preparation of any sets of accounts one of which is going concern that helps an account to assume for any future problems that occur in a business. This helps companies to make future plans and gives them time to gather money to sort out any financial problems. Consistency also has an advantage in helping in accounting by users of accounts can make more meaningful comparisons of financial performance. Prudence helps investors sort out financial performance such as future problems and cost of the business before recognising any signs of profits. Accruals also help financial data to be useful for users by all business revenues and cost are recorded in the appropriate statements and at the appropriate time. Conventions also have many advantages in influences financial statements to be useful for investors. Separate entity is one example this convention seeks to ensure that all private transactions and matters relating to the owners are segregated from transactions that relate to the business. This is an advantage because owner’s transactions are kept private. Also they are not mixed with the business finance so that users can clearly see the business financial state. Also materiality is also an important convention in a......

Words: 327 - Pages: 2

Advantages and Disadvantages of Modern Technologies

...Economic History of Hong Kong Hong Kong’s economic and political history has been primarily determined by its geographical location.  The territory of Hong Kong is comprised of two main islands (Hong Kong Island and Lantau Island) and a mainland hinterland. It thus forms a natural geographic port for Guangdong province in Southeast China. In a sense, there is considerable continuity in Hong Kong’s position in the international economy since its origins were as a commercial entrepot for China’s regional and global trade, and this is still a role it plays today.  From a relatively unpopulated territory at the beginning of the nineteenth century, Hong Kong grew to become one of the most important international financial centers in the world.  Hong Kong also underwent a rapid and successful process of industrialization from the 1950s that captured the imagination of economists and historians in the 1980s and 1990s.  Hong Kong from 1842 to 1949 After being ceded by China to the British under the Treaty of Nanking in 1842, the colony of Hong Kong quickly became a regional center for financial and commercial services based particularly around the Hongkong and Shanghai Bank and merchant companies such as Jardine Matheson.  In 1841 there were only 7500 Chinese inhabitants of Hong Kong and a handful of foreigners, but by 1859 the Chinese community was over 85,000 supplemented by about 1600 foreigners. The economy was closely linked to commercial activity, dominated by shipping,......

Words: 2125 - Pages: 9

Apparel Industry Overview

...Apparel Industry Definition Apparel Industry is represented by the companies that create and sell clothing, accessories, and footgear. Nowadays, majority of the Apparel Companies have both types of operations: wholesale and retail through which they reach their consumer. For our group, we chose ANF Inc. (Abercrombie & Fitch), American Apparel Inc. (APP), GES (Guess), GPS Inc. (Gap), NKE Inc. (Nike), and URBN Inc. (Urban Outfitters), which are under the category of Apparel Store and Textile - Apparel Footwear & Accessories. Since apparel companies are mostly under the category of Apparel Store, except for NKE, we calculate the percentage of the industry that our group of companies represent by using the sum of the market capital of the chosen apparel companies plus NKE’s market cap divided by the total market capital of Apparel Store plus NKE’s market cap. The result turned out to be 32.07%, which means apparel companies that we chose represent 32.07% of the apparel industry. Wholesale Business Apparel Companies that have wholesale operations, design and manufacture products, which they then sell to either external retailers such as department stores, discounters, and small shops or through their own stores. Wholesalers often have licenses to produce certain items under a specific brand, for which they do marketing and advertisement. Apparel companies that own many licenses of well-known established brands have a competitive advantage. However, during the economic......

Words: 2237 - Pages: 9

Indian Apparel Industry

...Indian Apparel Industry: The Indian apparel industry adds 14% to the industrial production and 4% to the GDP of India. The Indian Apparel Industry is one of the largest sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of the total exports. The market is highly competitive with 65000 garment units in organised sector. Top 3 competitors are Arvind Mills, Madura garments and ITC Lifestyle. SWOT analysis of apparel industry Strengths: • India has high Sufficiency for raw material • Cultural diversity offers good base for designers • Increasing urbanization and purchasing power of Indian youth Weaknesses: • High power cost and long export lead times • Low productivity of apparels as compared to global competitors • Reliance on imports for synthetic yarns Opportunities: • World textile trade growing at 5% annually • Integration of information technology • New market access through bilateral negotiations Threats: • Shortening of fashion cycles • Opening of domestic market for foreign players • Formation of trading blocks like NAFTA, SAPTA, etc The business strategy of Xtreme fashions is driven by its vision, mission and core values and it addresses the five forces of market. 1. Differentiated Product and Store Environments: Owing to the demographic diversity of India, Xtreme creates product differentiation by incorporating local tastes and trendy designs. Stores are designed to provide a......

Words: 456 - Pages: 2