Ch.1-2. Introduction to Globalization A P D M 4 7 1 I N T E R N A - - PowerPoint PPT Presentation

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,

• ngoing 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