Flashcards in facs 139 midterm 1 Deck (23)
Why is it necessary to view textile and apparel from a global perspective?
-Globalization of fashion- ex.gucci; originally from Italy. Stores in New York, Hong Kong, Tokyo, Miami+ other countries.
-24- Hour Fashion- very common to imitate couture looks. Merchandise can be made, and sent to sell in 24 hours. Its getting bigger and faster and keeps moving ahead always. quick response.
-The largest source of industrial employment in the world; (textile mills, factories) - not true in the United States. Have to look at the world. Other countries (china, Vietnam, and india it could be the main income for most people in those countries, some towns everyone works in the factories)
What are the reasons for the shift to a global perspective for textiles and apparel?
A. Economic Growth 1. Consumers in many countries have the means to purchase products from various parts of the world
2. Companies have been willing to add capacity to serve foreign markets
3. Fewer restrictions have been applied to imports when the economy has been booming.
B. Varying stages of economic development in many newly developing countries
1. T & C production have been the 1st industries for most countries as they have moved toward economic and industrial development.
2. Diversity in term of economic development attracts different countries to one another.
C. New Communications technologies
- Skype, faxing
D. Easy Access to most parts of the world through improved transportation.
1. People Transportation
2. Goods Transportation
*Importing goods and personal travel
E. Institutional Arrangements on the part of business and government
1. The development of basic rules and guidelines to establish order in international trade.
2. The transfer of payment for those goods and services from one country to another.
What is textile complex, textile sector, textile industry, and softgoods chain?
A. Textile Complex - The industry chain from fiber, to fabric, through end uses of apparel, interior furnishings and industrial products B. Textile Sector - same as textile complex C. Textile Industry - the fiber-to-fabric-segment of the industry D. Apparel Industry E. Softgoods Chain - textile complex plus the retailing or other distribution phases associated with making the products available to the consumer.
What are upstream activities and downstream activities?
Up stream activities- those processes in the early stages of manufacturing chain, such as fibers, textile machinery and dyestuffs. Downstream activities-closer to the end- use customer, such as wholesale and retail.
What are developed countries, developing countries, and newly industrialized countries?
Developed countries- the more industrially advanced and prosperous countries in which a higher level of living is common . Developing countries- limited in their economic progress and have little or no industrial development. Newly industrialized countries (NICs)- former developing countries, then have progressed to more advanced levels of economic and industrial development.
What are imports and exports?
Imports- buying goods and services from other countries Exports- selling goods and service to other countries
*Developing countries tend to export more than developed countries because of cheap labor.
How did the textile sector develop in historical global industrial movements? In other words, what is the general movement of the textile sector according to the history?
How did the textile sector develop in historical global industrial movements? In other words, what is the general movement of the textile sector according to the history?1.Textile led the Industrial Revolution when it became the first sector to shift from the use of skilled hand labor to production based on hand-powered machines and, later, steam power(Developed countries used textiles to lead industrial revolution) 1st picture - Use of machines for production (Industrial Revolution) 2.First sector to build factories to apply the new developments on a large scale. 2nd picture - Development of Factories 3.The development of mill towns in rural areas. 3rd picture - Migration from farms, development of mill towns 4.create the jobs that led to participation of the first generations women in widespread employment for wages outside the home. 5.Poor working conditions in the textile mills and later in the garment factories led to the first industrial reform . in many developing countries today they are still on the 5th step B. U.S. followed the same procedure 1. Golden age of textile machinery 2. samuel slater- spinning mill (1789) a. eli whitneys cotton gin- clean cotton (1793) b. power loom (1795)
When the transitional years for international trade are considered, what happened in the 17th and 18th centuries, the 19th century, the early 20th century, the mid-20th century, and the late 20th century?
A. The 17th and 18th centuries (Stage C)
1. The era of mercantilism
2. The emergence of capitalism
B. The 19th Century (Stage E)
1. Foreign expansion
2. A time of important changes in the US
3. Migration of labor
C. The early 20th century (Stage B)
1. Development of an international economy
2. Economic nationalism builds
3. Emergence of protectionism
4. US as a leader in world trade
D. The mid-20th century (Stage A)
1. Trade became more volatile
E. The late 20th century (Stage D)
1. Development of floating exchange rates
What are the different kinds of economic systems? What are the characteristics of each of them?
A.Market-directed systems(developed countries):Consumer choice,consumers decide supply/demand,competition
B. Centrally planned systems(developing countries):Government choice,policies decide supplydemand,no competition C.Mixed economies
2.What are the different types of political systems? What are the characteristics of each of them?
A.Democratic Political Systems -People have voice (australia follows this, france follows this, india, japan, South Korea, italy, mostly developed countries)
B.Nondemocratic Political System-Centralized decision-making people are under control (vietnam, china, russia-in between, North Korea, cuba, economic system and political system go hand in hand)
When economy and trade are discussed, what do scarcity and choice mean?
Scarcity and choice-1.no society can provide everything its people want ,2.Resources of time ,labor,machinery, and land are scarce. 3. We choose between competing demands on resources( friends party on saturday, or study for 2 midterms coming up the following week)
What is opportunity cost?
the opportunity cost of using resources a certain way is the value of what these resources could have produced if they have been used in the best alternative way. (video of opportunity cost; man plays with his daughter instead of reading his book, what is his cost of playing with his daughter? he gives up reading a book . OPPORTUNITY COST IS WHEN YOU PICK BETWEEN 2 DEMANDS, THE ONE YOU DONT PICK IS YOUR OPPORTUNITY COST. Which has higher oppportunity cost? playing with his daughter. Example 2. growing cotton in NY wont be good due to the sacrifice of valuable land resources there, then the price of cotton would be high .
What are the laws of supply and demand? What is equilibrium price?
1.Law of Supply a. a general statement about how producers adjust the quantity of goods or services available in relation to incentives (price b. When the reward offered for a specific product rises, this reward provides an incentive to produce more of the products. 2. Law of Demand a. a general statement about how individuals respond to changes in price.b. rising prices for a product usually cause a drop in demand 3. Equilibrium Price a. the price at which the quantity demanded equals the quantity supplied.
(The law of supply and demand defines the effect that the availability of a particular product and the desire (or demand) for that product has on price. Generally, if there is a low supply and a high demand, the price will be high. In contrast, the greater the supply and the lower the demand, the lower the price will be.)
When can voluntary exchange happen?
1. In a voluntary exchange, that is, buying and selling of goods and services - both parties must feel they are benefitting 2. Both parties are pursuing their own best interests and believe they will be better off as a result of the trade.
What is Mercantilism? What is the background of Mercantilism?
A. Mercantilism (oldest trade)1. A country’s wealth depends on its holding of treasure, in particular gold.2. England, France, and Spain competed and fought to acquire colonies and gold between 1500 and 1750.3. Economic Nationalism because of the emphasis on building domestic industries and domestic economies.B. Absolute Advantage 1. Adam Smith, 1776 2. Certain efficiency of production by certain country 3. Based on natural advantages, acquired skills/tech and labor
How to understand the theory of absolute advantage? Who developed it? What might be the limitations of this theory?
How to understand the theory of comparative advantage? Who developed it?
C. Comparative Advantage 1. David Ricardo, 1817 2. Case of no absolute advantage 3. Example *US should export to India. *If you had to chose one for India to produce it would be Pants because it is closer to the time it takes US to make pants.*If you US had to chose it would be Jets because comparatively they make more money.
What is Factor Proportions Theory? According to this theory, what are the two requisite factors of production? What questions can this theory answer?
Answer two questions a. why this comparative advantage (relative efficiency of labor) exists? b. How to identify the product areas in which countries might have their greatest advantage?2. Two requisite factors of production a. capital (developed countries) “should focus on” b. labor (developing countries) “should focus on”*If I have a lot of money but I don’t have a lot of employees*If I have less money but lots of employees 3. Capital - abundant countries export capital - intensive products; less developed countries export labor-intensive products
How to understand Mainstream/Modernization Theories of Development?
Main Points a. every country can reach the 5th stage at last (yes eventually they will) b. developments means accumulation of capital c. trickle down economics d. based on technology
What are the Rostow’s Stages of Development?
1. Rostow’s Stages of Development ;a. The traditional society b. the pre-take-off stage c. the take-off d. the drive to maturity e. the age of high mass comsumption.
How to understand Structural Theories of Development?
Main Points a. the rich country is rich because of the poverty of other countries b. success/failure dependent c. Imbalance of resources = development gap d. T&C play role in exploitation e. global interdependence
What are the three zones of development?
a. First-World Core
1. international upper class
2. dominant world
3. 15% of world populations
4. 80% of money
b. Second-World Semiperiphery
1. International middle class