The Fashion Business

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The Fashion Business

2

Impact on Global Economy

Changes in government policies and new trends in international trade have caused the market for fashion goods to increase.

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The Fashion Business

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Impact on Global Economy

Globalization allows citizens of most countries to shop and enjoy products from around the world.

globalization the increasing integration of the world economy

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The Fashion Business

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Impact on Global Economy

Globalization has created increased competition between countries in the manufacturing sector of fashion. Labor is a major component of the cost of production for fashion products.

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The Fashion Business

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The Balance of Trade

Trade involves imports and exports.

imports goods that come into a country from foreign sources or goods that a country buys from other countries

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exports goods that a country sends to a foreign source or goods that a country sells to other countries

The Balance of Trade

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Trade Deficit

Trade Surplus

Balance of Trade

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The Fashion Business

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Trade Agreements and Restrictions

Free trade exists when a government allows products to move freely across its borders.

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The Fashion Business

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Trade Agreements and Restrictions

The North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada is an example of a free-trade agreement.

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The World Trade Organization (WTO) is an international organization that promotes and enforces trade laws and regulations.

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Globalization and America

The globalization of the fashion industry is evident in the United States.

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Givenchy of France has stores in New York City, Europe, the Middle East, and Asia. Escada of Germany has shops in Las Vegas, Nevada. Benetton of Italy has stores in the United States and India. Gap stores are in the United States, Canada, France, and Germany.

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International Fashions

Advances in technology have increased communication around the world. Producers, designers, and retail buyers cover the globe in search of new products.

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International Fashions

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For sale in a shop on

Rodeo Drive in

Beverly Hills

Produced in China with fabric from India

Modeled on the runways in Milan, Italy,

and Paris, France

Purchased by a customer in New York City to wear at a trendy party

Designed by a designer in France

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The Fashion Business

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Impact on Domestic Economy

According to the American Textile Manufacturers Institute (ATMI), U.S. consumers spend $275 billion every year on apparel.

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3 billion slacks or

pants

5.7 billion shirts or blouses

370 million sweaters

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Impact on Domestic Economy

Approximately 1 million employees work in the U.S. textile segment, representing 6 percent of all U.S. manufacturing industries. These industries support 2.75 million jobs in the textile industry.

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The Fashion Business

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Impact on Domestic Economy

Issues in the textile industry include:

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Declining use of domestically grown cotton affecting the U.S. cotton industry Rise of global competition