Questions Ch. 9
How does the seam in the toes of your sock
demonstrate that the US
apparel industry continues to be protected
even while global trade is liberalized.
I should have written
"continued" instead of continues. The US
gave preferential access to the US
market for Caribbean-made socks only if the toe seams were sewed in the US.
Explain how the terrorist attacks of September
11, 2001 created a trade war between Pakistan
and the US's
"alphabet army". Who won? Use these terms in your explanation:
quota, Bush, Wal-Mart.
had become an apparel exporter before 9-11 but had almost met their yearly
quota and their exports to the US
faced a high tariff. US retailers and Pakistani government
officials proposed that the quota be raised and the tariffs suspended because,
otherwise, Wal-Mart would stop buying apparel from Pakistan.
In return, Pakistan
would cooperate in the War on Terror. As a neighbor of Afghanistan,
cooperation was crucial to US military activities in the region. Because
the Bush administration was able to only make relatively minor adjustments to
Pakistan’s quota, Rivoli concludes that the US
textile industry and its “alphabet army" won.
3. How did DeMint's victory suggest that the decades of textile industry
protection were almost over?
DeMint was running for South
Carolina's Republican senatorial nomination. His
opponent ran as a protectionist. DeMint ran as a free trader.
4. During the past 40 years of trade negotiations what has happened to
tariffs on trade between rich countries?
They have been almost
5. During the past 40 years of trade negotiations what has happened to
tariffs on products exported from poor countries to
remain to limit imports from poor countries to
rich countries. Why?
Protection of textile industry and agriculture.
6. Which "major cost-competitive exporters" have been constrained by
before MFA. China
do major retailers plan to change the geography of the apparel industry after
the MFA expires?
Instead of buying from
more than 50 countries, they will focus on 5-6 countries.
8. How does Figure 9.1 demonstrate the dramatic changes that
occurred in apparel manufacture when some of the apparel quotas were
removed? Also, use the Esquel example to explain this change.
More than 15 small
countries experienced decreases in their exports to
US while China's
share increased by 900%. With the lifting of quotas, Esquel was able to
close up shop in Mauritius
and move production back to China.
Compare projected textile and apparel industry job losses in the US
with the countries in the developing world. Which countries and workers
will be worse off? Far more textile-related jobs will be lost in
developing countries of the world, up to 30 million, than in the US.
These workers will have far fewer employment alternatives than
laid-off workers in the US.
This could create increases in emigration and cause political instability.
Explain how the information in Figure 9.2 is related to question #9?
Figure 9.2 shows
that apparel manufacturing is the
primary source of industrial jobs in many countries. These are the best
jobs in these countries. When apparel manufacturing leaves, these
countries will have lost their most lucrative exports.
How might Cambodia successfully compete with China? Use the terms
"socially responsible" and premium in your answer.
trying to capture some of the socially responsible market,
that is, consumers who care about the people who manufacture their clothes and
the conditions they work in. These
consumers will pay a higher price for a t-shirt if they are certain that it
wasn't made in a sweatshop. China
has shown no inclination to provide sweat-free apparel.
How was the "Istanbul Declaration"
evidence that Auggie had support beyond the Carolinas?
The Istanbul Declaration
was signed by 47 countries. The document focused the WTO's attention on
China's unfair trade practices: currency manipulation, repressive labor
13. Why were the CIA and NSA interested in the fate of the MFA?
The CIA and NSA were worried
that 10 million unemployed manufacturing employees in the Muslim world could
cause political instability and possibly increase terrorism.