4/27/2014 Global Sourcing Final flashcards | Quizlethttp://quizlet.com/41486970/global-sourcing-final-flash-cards/ 1/15Global Sourcing Final Created by rtc12 This set has 156 termsOriginal AlphabeticalOnly covering Trading Blocs/ Quality Assurance/ ArticlesIntra EU trade among countries that are membersof the EUExtra EU EU trade with countries that are notmembers of the EUEU15 original 15 countries of the EU (WesternEurope)EU 2004 Eastern Europeeffected by end of MFAImports/Exports depend on level of domestic consumptionavailaility of materials level of economic/industrialdevelopmentIndustrial Revolution Began 1700Industrial Textile Advancements fly shuttle loomspinning equipmentsSociety went From Agricultural/Rural to Industrial/Urban1800s English Colonies Americas, India, Africa60% World Trade in Cotton EnglandGermany divided into West/East after WWIIhigh labor/production costshigh tech fashionItaly high wageshigh end niche marketupscale fashion exporter (armani,versace, valentino, prada, diesel)(quality, luxury, fashion)Logged in as rtc124/27/2014 Global Sourcing Final flashcards | Quizlethttp://quizlet.com/41486970/global-sourcing-final-flash-cards/ 2/15France reconcilation with Germanyeconomicreunificationexports pretaporter (ready to wear)sold under designersdior, pierre cardin, chanel, givenchy,hermes, st. laurent(fine wine, food, and fashion)Paris France's principal import, marketing,distribution centerAvenue des Champs Elysees most expensive retail space in europeLondon's Oxford St & New Bond St second most expensive retail space ineuropeSpain lower wages/ GDPproduced for textiles/apparelfast fashion (ZARA)effected by expiration of MFAEASTERN EUROPE (Poland) most produce new 2004 EU countryproduce for foreign firms for exportprovides apparel consumer market forother nationsRussia large, poor in natural resourcesnot a member of EU or WTOcotton/wool agricultural productsnot modern manufacturingshift from street to retailfashion designers emergingRomania EU 2007texilte/ manufacturing 1/4 of totalexportsmoving towards privatization(womens suits for TJ maxx)FTAA Free Trade Area of AmericasOrganization of American States (OAS) Defend democracy, protect humanrights, strengthened security againstterrorism, foster free trade/ Free TradeArea of Americas (FTAA), combatillegal drugs, and fight corruption.4/27/2014 Global Sourcing Final flashcards | Quizlethttp://quizlet.com/41486970/global-sourcing-final-flash-cards/ 3/15NAFTA North American Free Trade Association(1994)US,Cananda, Mexicono tariffsreduced quotaseliminate restrictions on foreigninvestmentenvironmental standardsethical standards (child labor, health,saftey, minimum wage)1994 MERCOSUR: Southern CommonMarketArgentina, Brazil, Paraguay,Uruguay,Boliva and ChileFree internal tradeCommon external tariff2001 FTAA (Free Trade Area ofAmericas)Make all of the Americas a free tradearea(extension of NAFTA andMERCOSUR)Still under negotiationWill allow free trade among 34 countriesOnly 2 Developed Countries in theAmericasCananda/USUS Retail Merging Into Huge Corporationshuge quantitiesless diversedriving out small business(Ex: Walmart, Target, Federated)Cananda Larger than US (1/9 Population)1982 independent of Great BritainEnglish/French speakingUS is largest source of textilesretail 2nd largest employerCanadian Apparel Manufacturing Can effectively produce small runsCan cater to niche marketsBecoming known for qualityCanadian Retail Growth went from small stores to big companiesinternet growing4/27/2014 Global Sourcing Final flashcards | Quizlethttp://quizlet.com/41486970/global-sourcing-final-flash-cards/ 4/15Mexico Independence from Spain 182195% family owned business90% of apparel exports are to USNAFTA in Mexico apparel exported must be made fromtextiles made in Mexico, US or Canadaprevents seeking cheaper sourcingoptionsNAFTA claims to prevent illegaltransshipmentRetailing in Mexico Modern Retail Stores(efficient/technology)Traditional Markett (streets/small stores)Caribbean Basin apparel industry growth is a result ofU.S. trade preference programs alternate to drugs"Fabric Forward" rule US Textiles shipped to other countriesfor constructionthen imported back to US with the tariffpaid only on the added value of thegarment. Allows production of apparel outside ofU.S. while protecting U.S. textileproductionANDEAN Bolivia, Colombia, Ecuador,Venezuela,and PeruPeru highend cotton and camelid (alpaca,llama, and guanaco)OAS (Organization of American States)1948First attempt to unify economic andpolitical goals of the AmericasAmericas consist of North AmericaCentral AmericaWest IndiesSouth America4/27/2014 Global Sourcing Final flashcards | Quizlethttp://quizlet.com/41486970/global-sourcing-final-flash-cards/ 5/15Asia Largest population/geographic size1/3 of world's landmass 56% of world's populationHighest population density in world(China & India)East Asia China, South Korea, Taiwan, and JapanSoutheast Asia Hong Kong and ASEAN—8 countriesin the Association of Southeast AsianCountiesSouth Asia Pakistan to Bangladesh, including IndiaOceania Australia and New ZealandAPEC: AsiaPacific EconomicsCooperation, 198921 nationsno treaty obligations/bindingcommitmentsMember nations "Pacific Rim" includeNAFTA countries, Chile and Peru(South America)MFA Phase Out Caused Retailers to consolidate purchasing activitiesSourcing Considerations tariff ratessocial responsibilitypolitical/economic situationworkers (low cost, skilled, ethical)technologyraw materialslevel of service provided (full packagevs. CMT)OCEANIA Australia and New Zealand developedeuropean settlementsproduce over half the world's wool fordomestic use and exportSmall apparel industry, mostly fordomestic use; highquality fashion goodsJapan, South Korea, and Taiwan produce textiles but outsource apparelproduction research and production of syntheticfibers4/27/2014 Global Sourcing Final flashcards | Quizlethttp://quizlet.com/41486970/global-sourcing-final-flash-cards/ 6/15Japan technology orientedimports 90% of apparelDesire highend, highfashion, luxurygoods (consumer 41% of world's luxurygoods)Hong Kong and Macau Leading global exporters of textiles andapparelChina Largest producer of manmade fibersCheap mass producedASEAN: Association of SoutheastAsian NationsBrunei,
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