Research Paper

Brisia Rivera

GCS 100

April 10, 2020

There are deep flaws in this view of globalization. The idea of out-shoring jobs in a capitalist society is to join the global market and essentially increase the number of companies in the developing nations and subsequently this will have a positive impact on the development of the nation. However the theory of globalization is sophisticated capitalism on paper the introduction of globalization in the international garment cycle however presents a set of negative economic disparities in the manufacturing host countries that impose an economic and business projection that is unsustainable. It is a set of very well articulated and written foreign trade laws and policies to believe that globalization in the garment industry is a good thing. Perhaps an increase in the employment rates, the earnings of the people increase simultaneously, this is an optimistic thought that may contribute towards the growth and the development of the people. Yet reality has yet to reflect or coincide with the positive theory’s and thoughts on the benefits of globalization within this billion dollar industry. A billion dollar industry with just as many issues. Where is this abundance of profit going? How is it being distributed? What is the economic hierarchy in this industry? I will be covering the where, when, why and how globalization has delivered strong and successful economic benefits and disadvantages in order to highlight who has received a higher rate of return using global capitalism.

Geography goes beyond the intricacies of the land, within a matter of space in time you step into a different economic status, different laws, different resources, different benefits, different limitations, different language, different policies overall a different way of life. The world we are living in is filled with money hot zones referred to as foreign trade zones, which is really important in this economic analysis. The setting really sets the tone for how fast money is made. Export processing zones (EPZs) are areas within developing countries that offer incentives and a barrier-free environment to promote economic growth by attracting foreign investment for export-oriented production. Free export zones have made it possible for garment industries, across the world to participate such as, Bangladesh, India, and other Asian nations. International policies have been regularized, placed and catered to encourage competitive international members like China to increase the transit value required to promote globalization in the international market. In order to increase the needs of the clients demand for the garments. Although it is a liberal meritocratic participation in the flow of goods in and out of borders the terms and conditions vary from country to country.The allocation of benefits of trade and cross border investments is shifting the living standards in China and other emerging economies.

The language of money is going to be a very important theme in this analysis given to its significant ability to lure in complex, paradoxical and diverse countries to collaborate with the common goal of profit maximization. Economic growth has diffused differences in order to mitigate and create collaborative negotiations to make money. The International Trade Administration has a department Office of Textiles and Apparel that have a detailed list of who the U.S. is in business with. It is important to know about Australia, Bahrain, CAFTA-DR(United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua), Chile, Colombia, Israel, Jordan, Korea, Morocco, NAFTA(Mexico, U.S. and Canada), Oman, Panama, Peru and Singapore because these are the places the U.S. has what is called Free Trade Agreements. These agreements are important because they are in black and white this legitimizes them as official documents that can be used as collateral insurance in the active participation in the global market. Free trade on exports and imports exports increase wealth in the U.S. because it gives Americans alternative opportunity to buy more imports at a lower price, which maximizes a consumers utility. These agreements make it possible for both foreign countries and the U.S. to eliminate conflict by being in compliance with the agreement set by the World Trade Organization. Therefore in compliance and consistent implementation of Intellectual property rights, import licensing, rules of origins, investment services, government procurement and tariffs.

These trade agreements have created an economic hierarchy among the countries that has defined the style and culture of globalization in fashion garment industry. Starting off with

textile manufacturing giants like the USA and UK on top. Making manufacturing units in developing countries like India and China right below them. This hierarchy supports the manufacturing of goods at very low prices. Working our way down to the bottom India and China face competition from many other developing nations like Philippines, Vietnam, Bangladesh, Myanmar, Brazil, and even African countries. These countries have lower currency value therefore bagging outsourcing work for lesser prices than India and China. As these countries eagerly work to make there way up this economic hierarchy those on top profit

and exploit the emerging countries.This economic model creates a toxic unsustainable atmosphere of competition for survival.Which brings me back to trade agreements set in place by the World Trade Organization who does the law protect? Whose rights are protected in an international garment business transaction? Does the law transcend borders to implement and enforce transparent international garment affairs?

Bibliography

Trade liberalization helps explain the bold global wealth disparities by introducing quota restrictions set forward by the world trade organization. It is important to see how the garment industry operates at an international scale in to see where the main profits from garment production go. In this case the Northern companies who control the industry. These companies will benefit from more open markets and associated competition between global suppliers. Meanwhile, for workers North and South, this increased competition brings insecurity and the threat of deteriorating conditions of work.

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Counting the Cost of the Global Fashion Industry introduces the geography of the Fashion Garment Industry. The economic definition of Made in Italy vs. Made in China. It serves as strong supporting evidence for the unequal geographies of fashion. It reveals the ugliness behind the beautiful things people wear by highlighting the complex connections between production, branding, retailing and wearing.This article will serve to further exemplify the global wealth disparities by revealing the contradictions that lie in the core of the global fashion garment industry.

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Out sourcing exploitation is a great way to put China on the stage as the undeniable leader within the garment industry. This article take a critical approach and compares China and to Cambodia. Two different economies undergoing industrial updating and development, which is important to keep a close eyes on economies that are emerging because it only takes progressive and strategic economic moves to make there way to the top over a period of time. Thise article provides a detailed breakdown of China’s Garment Industry that illustrate their success. As I will be discussing in the economic hierarchy this article will further exemplify how China is working their way and what effects it has on the U.S. as well as the rest of the world

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In the article Politics at Work the Multi Fibre Arrangement will point out the disadvantages of global negotiations that derive from the Free Trade Agreement set forward by the International Trade Organization. I will also illustrate how one countries prosperity is a result of another country’s poverty. It is important to understand how the wealth of the U.S., U.K., China and India dismantles local and national economies all over the world. Since the garment industry foster intense competition this article supports the strategic alliances that make it possible for the garment industry to participate in a global economy however the cycle of goods is not smooth due to global labour movements.

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Compliance Versus Accountability: Struggles for Dignity and Daily Bread in the Bangladesh Garment Industry maps out the international parameters of the garment industry. It gives a thorough break down how the garment industry is moved from on country to another based on the lowest production cost prices.My research will be covering the economic geographic map that exemplifies who benefits, who is exploited and how clothes travels throughout this economic hierarchy, crossing borders utilizing the International Garment Cycle as a source of transportation.

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Global wealth inequality in the Garment Fashion industry.The allocation of benefits of trade and cross border investment is shifting the living standards in China and other emerging economies. Since China's economic model is a potential alternative and vision of global capitalism’s future, I will utilize Liberal Meritocratic Capitalism and political capitalism to introduce and support my economic analysis on the billion dollar contribution from the Garment Fashion industry to global wealth disparities.

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An inquiry into the Rapid Growth of the Garment Industry in Bangladesh by Abdul Mottaleb offers vital historical context. Wholesome historical research offers a well rounded approach that serves as supporting evidence for my economic analysis. I believe it is important understand the origins of the garment industry, because although one might assume it is a successful rapid growing, billion dollar industry my research will reflect otherwise. The history of the garment industry will not only offer content for analysis but it will lead and guide my economic analysis into the language of money. The success of this industry is not due to its profits its due to its economic structure that although all manufacturing importing and exporting countries can agree that profit maximization is the main goal. The language of money translates very differently across borders for some it’s an abundance of wealth and for others its an opportunity to survive.

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The past is just as important as the future. Therefore this article points out how the pressure from diverse social groups, both environmental and economic, is changing the operating environment. It is important to understand the difference between shift and evolution in order to see wether or not globalization is updating in a progressive fashion or simply undergoing industrial development to remain relevant in the global economy.

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