Essay

Reading and Discussions of the articles 5

Title:

Name:

Course:

Professor Name:

Date:

Article Discussions

Journal: The Relationship Between Import Penetration and Operation of the U.S. Textile and Apparel Industries From 2002 to 2008. By Sheng lu1 and kitty Dickerson2

1. What are the implications of adopting the various industry restructuring strategies in the U.S. domestic T&A industries?

Most of the adoption of the restructured policies led to different consequences as the import penetration increased in the U.S. textile market. U.S market was found negatively associated with its market share as employment size formed a weak relationship with the imports. Secondly, productivity and wage level had no significant impacts on the U.S market as the penetration of imports into the U.S apparel industry. As the market share relied on the imports though the quota elimination had no significant effect on the U.S textile industry. The strategies also formed a relationship that encouraged more businesses globally. Therefore, the two industries overall stabilized as the result of their sweeping restructuring strategies were adopted. Also, there were demand for occupations at different skill levels, improved in developing of products and prices for the different quality of goods. Its implications were not necessarily benefiting one side of the industry but both during that era. It enhanced global integration of the global economy where fragmentation of the global production and trade networks predominated. Finally, there was a shift in U.S trade policy from focusing on the import restriction to greater export promotion in the U.S textile industry.

2. What are the advantages and disadvantages of import penetration?

Import penetration rose at a higher pace as it had many advantages. However, difficulties incurred by the U.S. T&A firms were also observed during the era. Import penetration led to the substantial establishment of the business relationship. Also enabled the business partners outside the U.S. border to take greater advantage of resources on a global basis. Also, the trade and policy makers were influenced due to the import penetration thus led them to create a favorable environment for the U.S. domestic firms. Another advantage was that restructured strategies were adopted such as capitalization, mergers, and acquisition. On the other hand, disadvantages of import penetration led to a threatening and disruption factor to the existence of the U.S local Textile and Apparel firms. The market for imports was observed to have hiked lowering the market for local textile firms. Demand curve relative was seen shifting to the ‘right’ relatively to the domestic supply in the importing nation thus supply curve shifted towards the ‘left’ in the U.S. apparel firms.

China takes all? An empirical study on the impacts of quota elimination on the world clothing trade from 2000 to 2009.

3. As the research of the findings of the article, the results displays China to appear as a leading clothing trader during the quota elimination, what are the significant implications realized by the findings?

China is one of the biggest and largest beneficiaries of quota elimination. It is in this connection that China’s export growth and market share gains increased tremendously than the previous study findings that dwelt on the EU and the U.S markets. The global perspective looked at the detailed data on China’s market share hence realized that the world clothing export substantially increased in China trade. Secondly, the study recognized the critical factor that shaped the pattern of the global clothing trade in the post-quota was the influence of the geographic location. The geographical position of the China region favored its marketing as they could sell quickly to the many countries of the world. Also, China had had fewer limitations and complications as compared to the many countries in Asia, North America, and the Asia-Pacific region. In African countries did not appear anywhere since it substantially had limited competitive strategies in performing the global trading of the clothing sector.

Journal: India, the next China? Analysis of the unique firm resources claimed by Indian Apparel export firms.

4. Discuss and describe the significant roles that are suggested to be played by the Indian Apparel Industry?

In the research, Indian apparel firms have shared similar principal firm resources with that Chinese Textile and Apparel industry. Indian apparel industry experiences explain the ability of the firms to provide quality products due to the adequate and necessary infrastructure for mass-scale production. The ability of Indian firms to manufacture designer and high fashion garments that were unique resources to the market. The Indian companies also had the capacity to provide products at competitive prices, on-time delivery, and customer satisfaction. First, the firm having unique key resources should allow them gain and sustain competitive advantages in the market and also globally. It was seen particularly through the various operations; through price and design under organizational knowledge and learning resources. Also, experience in exporting of products, domestic resources needed by many people, local activities that took place on physical resources. It revealed critical resources that Indian Apparel Industry had and could use them in playing an important role in the market share. Secondly, Indian firms were suggested to re-evaluate their resources and unique contributions to the global market to achieve its actual role in the global apparel industry.Therefore, they were to communicate clearly to the foreign buyers on their roles regarding global apparel production. The mixed signals practiced by the Indian apparel industry is refuted strongly by the findings of the research to promote them in the market share. With the idea that other developing countries are grabbing the market share as the Indian industry claim to be the largest scale production. Thirdly, Indian apparel industry export firms are encouraged to invest more in general organization resources, such as awards from public media or government and certifications from the government. In turn, it will make them gain trust from the foreign buyers thus will improve their apparel export and the manufacturing sector. They are also suggested to avoid a replica of other country’s resources for their production to sustain competitive advantage since they have small and flexible batch production systems. Therefore, Indian industry Textile and Apparel need to re-evaluate all of their designing capability and their manufacturing set up so as to compete properly in the global market.