Textile Industry Trends in the Global Economy Essay -- Economics Techn

Textile Industry Trends in the Global EconomyI. Executive abridgment The objective of this paper is to examine how the development of a cloth industry contributes to economic growth in the global economy. Because textile manufacturing is a labor-intensive industry, growing countries are able to utilize their labor surplus to enter the market and begin the process of building an industrial economy. Emerging economies then look outer to develop an export strategy based on their comparative advantage in labor costs. Textile production and consumption is an increasingly global office as production continues to shift to developing countries. Developing countries have seen an explosion in the growth of their textile exports, and for many countries textiles are a significant packet of their total exports. In response to increasing competition from low-value imports from developing countries, industry leaders in developed countries have made significant capital investments in orde r to increase productivity and move into advanced market sectors.There are several trade agreements in place that impact world textile trade. The African Growth and Opportunities Act, Andean Trade Preference Act, and Trade Promotion Act are each designed to liberalize textile trade and brook equal market access to both developing and developed countries. Despite the potential economic and social benefits, the effectiveness of these trade policies is limited by circumscribed interest politics in the developed world. The presence of a political economy in developed countries can affect both the formation of and the fastening to international trade agreements industry leaders can still appeal to the World Trade Organization or their Trade... ... as Kenya Plans More EPZs. East African 22 April 2002. 10 October 2002 Tomkin, Robert. Trade Promotion Authority CQ House Action Report. July 26, 2002. Trade with Sub-Saharan Africa Export America. December 2001.U.S. Congress, Office of Technology Assessment, The U.S. Textile and preen Industry A Revolution in ProgressSpecial Report, OTA-TET-332 (Washington, DC U.S. Government Printing Office, April 1987). Yang, Yongzheng. Chinas Textile and Clothing Exports Changing external Comparative Advantage and its Policy Implications. Asia Pacific Press, 1999. http//ncdsnet.anu.edu.au/ link no longer working