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Global Analysis

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Global Analysis

The United States changed the rules concerning quotas on textiles and apparel imports at the beginning of 2005. This long coming transformation has definitely affected more than just the United States. Several countries have had concerns over this new policy. Firms that outsource the manufactures of their textiles apparel could benefit from this policy. These firms now can outsource anywhere due to the quotas being lifted. The firms can choose who to outsource to based on prices and/or quality. The firms no longer need to worry about which nation has already met its quota. Since the quotas on the US textile and apparel imports have been eliminated, outsourcing firms should have a good advantage. Quiet a few countries have been affected by this policy change. Textile manufactures and workers have seen the consequences of this alteration. China has seemed to benefit from this change. According to the Klako Group, Chinese textile and apparel exports to the US increased by 62.5% overall in the first quarter of 2005. The increase in manufacturing has exposed the workers of China to more labor, but it has not increased the standard of living or improved living conditions. Indonesia is believed to lose a large piece of the textile and apparel division to China. In 2001, the US was the largest market for Indonesia’s textile and apparel exports. According to expresstextile.com, 1.2 million Indonesians are employed in this industry. A decrease in exports and production would leave the country’s workers in shambles and would affect the Indonesian economy in a negative way. Asian countries pay considerably less wages than the Mexican textile and apparel business. With the elimination of quotas, many importing businesses will want the best price for their products and Asian nations will be able to offer the lowest price. This expected to

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