A P D M 4 7 1 I N T E R N A T I O N A L A P P A R E L T R A D E I S S U E S

Y O U N G J I N B A H N G , P H . D .

U N I V E R S I T Y O F H A W A I I A T M A N O A

Ch.1-2. Introduction to Globalization

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Measuring Levels of Development

The World Bank and United Nations use the term least developed to describe the world’s poorest countries

Terms First World, Second World, Third World indicate differences in levels of development

This text defines countries’ levels of well-being as least developed, newly developing, developing, and developed countries

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Measuring Levels of Development

Gross national product (GNP)

Gross national product (GNP) per capita

Gross domestic product (GDP)

Gross domestic product (GDP) per capita

Purchasing Power Parity (PPP)

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Measuring Levels of Development

Per capita

Gross national product (GNP)

Gross national product (GNP) per capita

Gross domestic product (GDP)

Gross domestic product (GDP) per capita

Table 1.2, cont.

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Developed Countries

Shifted emphasis from producing textiles and apparel to consuming them

Product development encompasses the design and engineering of products to be serviceable, producible, salable, and profitable (Glock & Kunz, 1995)

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Developing Countries

Significantly improved overall economic condition beyond those of newly developing countries

Embraced the production of textile and apparel products as a way to compete in the global marketplace

No longer the lowest-cost labor sources

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Newly Developing Countries

Nations whose overall economic conditions fall well below the world average in GDP per capita and other measures

Apparel production continues to be the vehicle that provides employment where unemployment and poverty rates are high and wages are low

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Least-Developed Countries

Rank the lowest in measures of economic well-being

Often suffer from governmental exploitation, ongoing tribal wars, lack of education, and traditions inhibiting change

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Organization and Operation of the Textile Complex

Horizontal integration is change brought about through mergers and takeovers among firms that perform similar actions

Vertical integration occurs when firms that perform different stages in the planning, design, production, and distribution of products join to form one larger business

Figure 1.6: Regions of the world in which global retailers are based

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Summary

Ways to view and analyze the operations of global production and distribution include economic and business, political and governmental, and sociological and labor perspectives

Countries around the world can be viewed as newly developing, developing, or developed, based on the trade balance of each in relation to textiles and apparel and gross domestic product per capita

The textile complex incorporates firms around the world into supply chains to accomplish textile manufacturing, apparel manufacturing, retailing, and consumption of textile products