FM 116 Lecture Notes - Lecture 7: Caribbean Basin Initiative, North American Free Trade Agreement, Protectionism

• School: FIT
• Department: Fashion Business Management
• Course: FM 116
• Professor: George Sanchez

Document Summary

Globalization: a shift from countries doing business within their borders to one in which all countries economies are connected by various production and marketing networks. Balance of trade: the difference between the value of exports (merchandise sent to foreign countries) and the value of imports (merchandise brought in from another country) Trade surplus: when a country"s exports exceed its imports. Protectionism: seeks to exclude or limit foreign goods and is supported by unite and textile producers. Free trade: supports the free exchange of goods among nations and is supported by retailers and consumers. Trade barriers mean higher prices for consumers. U. s. producers must compete in the world market. Foreign countries can retaliate by buying less from the u. s. U. s. firms who rely on imports would be less able to compete. Fashion producers in other countries fall into 3 categories: contractors, haute couture, rtw. Contractor: is an independent producer who does sewing for manufacturers.