Chala Jamison
Rosen, E. I. (2002). The Globalization of the U.S. Apparel Industry:
Making Sweatshops. University of California Press.
Please answer the following essay questions to the best of your knowledge illustrating critical thinking skills. Use detail where appropriate. Be tight and concise in your essay answers. Organize your thoughts. Remember grammar, punctuation & spelling count as 65% of your final examination grade.
1. Why has department store business declined in the US along with department store business in England, Germany, and Italy? How has the profitability paradox affected this decline in profits? How has the profitability paradox changed the way retailers do business? List and describe at least two ways the industry has prevailed during this time of retail flux (instability)? (50pts) Please cite APA.
Department store business declined in the US, England, Germany, and Italy because too many stores were opening and there was not a big consumer demand. There was “slow-growing consumer demand made it difficult for sales growth to keep up with operating expenses.” (Rosen 2002, pg. 188, para 3) This meant that sales were not big enough and it was too expensive to keep department stores in business.
The profitability paradox affected a decline in profits because “intensified competition led retailers to confront a productivity paradox: High operating costs challenged profitability, yet as competition forced retailers to reduce prices, reduced margins required them to increase sales.” (Rosen 2002, pg. 188, para 3)
Retailers were struggling to reduce operating expenses so that they could save money but still needed to find a larger market to sell to.
In order to prevail the industry used many strategies. First, they tried to find cheap labor so that they could save money. Second, they tried to find new technologies so that they could make things cheaper and faster. “They used a variety of new strategies to do this: for example, reduced labor costs, new technologies, strategic partnerships, private-label merchandise, and new niche-marketing techniques.” These were some other ways they tried. (Rose 2002, pg. 188, para 3)
2. Why was the Caribbean Basin Initiative crucial for Reaganomics? Explain the significance of (1) Manuel Noriega (2) the Contra Army (3) Sandinistas and (4) Fidel Castro? What was the significance of the Panama Canal? What is the significance of Noriega extradition to Paris, France? How does this relate back to the time when he was the dictator of Panama? How does this relate to the somewhat recent political situation in Nepal and the Maoist revolutionaries? (50)
The significance of (1) Manuel Noriega (2) the Contra Army (3) Sandinistas and (4) Fidel Castro are that these were different ways the US got involved in the Caribbean and Central America. Manuel Noriega was a Panamanian politician and dictator during the time of the CBI from 1983 to 1989. He was connected to the U.S but then the US invasion of Panama removed him from power .https://www.nytimes.com/2010/04/28/world/europe/28noriega.html
The Contras were U.S.-backed and funded rebel groups that were active from 1979 to the early 1990s in opposition to the communist Sandinistas which was the government in Nicaragua (Sayare, S. 2010) .Fidel Castro was a dictator of Cuba who was trying to lead a Socialist independence revolution in Cuba. The U.S saw him as a threat to the non-communist countries in the area (Sayare, S. 2010).
The Caribbean Basin Initiative was crucial for Reaganomics “The Reagan administration stepped up U.S. support of pro-American regimes in Central America.” One of the major steps they took to support Pro-american regimes was to create the Caribbean Basin Initiative. The CBI was “a new trade and investment program designed to promote economic development and political stability in the region and to check the spread of Soviet-Cuban influence in the Americas. Textiles and apparel once more became part of an anticommunist strategy” (Rosen 2002, pg. 129, para. 2).
The Panama Canal represents how America stayed involved and helped protect south america from communism. “U.S. security and military interests in the Caribbean and Central America region are widely known. The region’s shipping lanes are vital to U.S. defense and prosperity. Two-thirds of the oil imported by the United States, nearly half of U.S. trade, and many strategic minerals pass through the Panama Canal or the Gulf of Mexico.” The Panama Canal helped keep trade open with the US, Caribbean and Central America (Rosen 2002, pg. 131, para 2).
The significance of Noriega’s extradition to Paris, France is that in 1999, a Paris court convicted Mr. Noriega of laundering $3 million in drug money through American, British, Swiss and other international banks and into French accounts in 1988 and 1989.
This relates back to the time when Noriega was the dictator of Panama because we were offering support to his country during that time because of the Caribbean Basin Initiative. Basically we were giving money and support to countries and leaders like Noriega, meanwhile they could have been committing crimes. This could affect the economy of countries like Panama or the U.S.
This relates to the recent political situation in Nepal and the Maoist revolutionaries because Nepal has also been fighting between being communist or a monarchy. The militant faction later renamed itself the Communist Party of Nepal (Maoist), or CPN(M). This faction described the government forces, mainstream political parties, and the monarchy, as “feudal forces”. They have been fighting a Civil war ever since. https://www.crisisgroup.org/asia/south-asia/nepal/nepals-maoists-their-aims-structure-and-strategy
3. Why is China considered a major player in apparel production? How does artificially devaluing and inflating its currency (the Yuan) help China? Give two examples, one where devaluing the Yuan and one inflating the Yuan has created an advantage for China and has hurt the export/import country. Use a citation from Rosen along with an outside source to defend your answer. (50pts)
China became a major player in the apparel world. “China nevertheless had signed a trade agreement with the United States in 1980 and a second one in 1983, treaties that reversed a thirty-year period of cold war hostility and reopened U.S. markets to Chinese exports. A significant portion of these exports was made up of textiles and apparel” (Rosen 2002, pg. 122, para.1).
China became able to earn more money once the United States agreed to trade with China . The low cost clothing, footwear , and accessories is what made China able to do business with the United States. Clothes and footwear is needed in America so people are going to continue to buy and China will get profit from each sale .
China started “spending heavily on labor-saving, state-of-the-art technology, China began to bring its textile industry up to globally competitive standards” (Rosen 2002, pg. 207, para. 3) .
Once China began to upgrade when using the highest level of technology to improve the country and make China stronger than other countries . That is a reason why China became very powerful by the constant upgrades. That is what makes China have an advantage compared to other countries .
One example of where China devalued the Yuan “but China nevertheless had signed a trade agreement with the United States in 1980 and a second one in 1983, treaties that reversed a thirty-year period of cold war hostility and reopened U.S. markets to Chinese exports.8 A significant portion of these exports was made up of textiles and apparel” (Rosen 2002, pg. 211, para 1.) .
The decrease in the value of the currency in China has made the Yuan devalued . China decided to make its currency to the United States dollar once before. This made China’s currency more stable. Though the United States and other developed countries were not a fan of the idea making the Yuan undervalued. One benefit was that China exports increased . Yet it made it more difficult for foreign exports to sell merchandise to China.
One example
Jobs in the United States are being lost from the fact that China has cheap imports. Making inflation for China expands the money supply to maintain the Yuan . Although China will see slow manufacturing from other countries because the other countries are losing benefits of low cost yuan exports.
China does things that other modern countries would not do. China is not afraid to do illegal transactions. China did not follow America’s standard and policy when doing business . This is why china is advanced as well but this also hurts china import resources with other countries because soon other countries will not want to work with china because of the reputation of how china does business. Many countries want to earn money and do business the correct way rather than earn money and have a bad reputation .
4. Discuss how (1) job loss, (2) lower wages, (3) pressure for retail profitability, and (4) trade liberalization affect an overall benefit to consumers who purchase apparel goods. Are consumers actually paying lower prices for apparel? If so, then why is high fashion apparel so expensive? Defend your answer with a citation and be sure to include the significance of tariffs. (50pts)
Job loss, low wages, pressure for retail profitability, and trade liberalization have helped make prices lower for consumers who purchase apparel goods. Job loss and lower wages have helped lower consumer costs. Retailers eliminating their full time, skilled sales workers made up of career staff , retailers have changed their labor practices (Rosen 2002, pg. 180. Para. 3) . High fashion apparel is more expensive because of the quality of the fabric. Most high fashion clothes are made with silk or 100 percent cotton.
Lower wages also help consumers get lower prices . Textile and apparel manufacturers are pushing the government for different types of trade liberalization, pursuing even lower wage manufacturing sites . Retailers then open more stores to sell clothing at a lower price . This benefits consumers because they are able to pay lower prices for clothing that is needed . Due to the fact that many people have lost jobs at the time and people were paid low wages . It is good that the prices are lower for consumers so they can purchase items and goods for the retailers because they will get more sales which makes the companies more money (Rosen 2002, pg. 177, para. 3) .
There was also pressure for retail profitability due to needing to reduce working costs in
Arranging to extend deals and margins , retailers started to force unused sorts
Of financial weights on their attire providers , making critical changes (Rosen 2002, pg. 180, para. 3).
High end fashion designers refuse to offer less expensive clothing because of the status that was earned for being seen as a luxurious fashion designer. High end fashion designer clothing is artistic and meaningful and is viewed as high value. High fashion apparel is so expensive because apparel clothing retail at expensive prices to the consumers because textile and garment producers are making greater efforts to sell more textiles or clothes to raise market share (Pa. 177 Para. 2).
5. Women have been part of the apparel work force throughout its development that has transitioned into a global entity. Give two (2) examples in history when women’s wages were not of equal value to those work wages of another industry or her male counterpart. Please cite each reference. Describe how the Lowell Model has shed light on the difficulties of being a woman in a low-wage industry. Please be specific. (50pts)
Two (2) examples in history when women’s wages were not of equal value to those work wages of another industry or her male counterpart
“The vast majority of the lowest-wage production workers are women over 80 percent . Men receive wages that are 20 to 30 percent higher than those of women” (Rosen pg. 23, para 3). Men get paid more than women. It was always a stereotype that men are stronger than women and women are too emotional to be in power and own businesses. Yet today many women have proven that to be incorrect. One example is Tory Burch; she is a woman who owns her own fashion company and is very successful . Women are always seen as housewives in history for a long time .
Fabric making became an art and a trade in the Middle Ages , women were given less skilled tasks . To show that women can only do jobs that are easy and seen as a job for a lady . Another way of showing the opinions of men that women can not be seen as powerful and can not do anything else is hard labor . It is a sexual division of labor and was supported by industrialization in ways that continued to retain the inferior
role of women in clothing and clothing production. (Rosen pg. 23, para 3) Women should not be viewed as sexy but should be able to model with clothes on and not seen as a sex symbol for clothes to sell . Men are able to advertise clothing and not viewed as a sexual object , women deserve the same respect in the fashion industry.
Trade liberalization in clothing and textile encouraged by the United States driven trade policies and accepted by many low wage countries government leadership and business , has improved corporate access not only to low wage labor but to low wage female labor in recent decades. Females are still viewed differently and separated from men at this time . This is a difficulty for anyone who is a woman because it is no equality for women.
For many years women have been paid lower wages than men . The Lowell Model has shed light on the difficulties of being a woman in a low-wage industry. The Lowell Model is based on the 1830s. American born farm girls have been hired to work in the United States. New Lowell and Lawrence textile mills, Massachusetts. This was not good and was a difficulty for women because women worked 73 hours a week. It is now against the law in America for a human to work 8 hours without a break and to work over 40 hours a week without receiving overtime pay .(Rosen 2002, pg. 240. Para 3) .The mills tried to make this seem ok because the women got paid better wages, but it was still socially unacceptable and unjust. (Rosen 2002, pg. 240. Para 3).
Citation
Sayare, S. (2010, April 27). Noriega Arrives in France for Charges. Retrieved December 14, 2020, from https://www.nytimes.com/2010/04/28/world/europe/28noriega.html
Own, J. (2016, September 14). Nepal’s Maoists: Their Aims, Structure and Strategy. Retrieved December 14, 2020, from https://www.crisisgroup.org/asia/south-asia/nepal/nepals-maoists-their-aims-structure-and-strategy
