1. FCS555: Textiles and Apparel in the Global Economy

2. Globalization An example: – Silk cocoon trade – Silk processing – Silk yarn to fabric – Fabric to finishing dyeing printing – Cutting – Sewing/assembly – Retail sales

3. Levels of Trade Domestic trade International trade Global trade

4. Trade Balance Trade balance=exports-imports Trade surplus: trade balance>0 (exports>imports) Trade deficit: trade balance<0 (exports<imports)

5. Measuring Levels of Development Developed Countries Developing Countries Newly Developing Countries Gross National Product (GNP) – GNP per capita Gross Domestic Product (GDP) – GDP per capita Purchasing Power Parity (PPP)

6. Global Economic Interdependence Developed (or Industrialized) Countries Developing Countries Newly developing (or Emerging) Countries Developing countries have primary roles in production and developed countries have primary roles in consumption.

7. Textile Complex Figure 1.3

8. Flow of Activities In Production and Retailing Upstream & Downstream Activities – User & Supplier Relationships Vertical & Horizontal Integration of Organizational Structures – Vertical -> Users & Suppliers in the same company – Horizontal -> Similar operations such as retailers with stores for different target markets Sourcing, Production & Marketing

9. North American Industry Classification System (NAICS) Textile Mills (NAICS313) Textile Product Mills (NAICS314) Apparel Manufacturing (NAICS 315)