Business: The implication impacts in textiles industry.
What do you believe those implications’ impacts will be on a small-‐ to medium-‐sized business over the next five years in an industry category in which you either work in or follow closely?” How you will have to “plan around” those implications in order to create a advantage for your business?
Cotton production had a historical changing face. The trade of cotton itself was different from prevailing eras. There was historical competition that existed between the countries leaders for cotton production and the development that resulted from the trade. It is in this effect that each country deployed different economic concepts to become a better competitor. As America grew to be a force in the cotton industry, England demanded that the poor people (who ran small or medium sized cotton farms). On that note, American investors came to realize that the cotton being grown was from England and that it created more demand for the textile mills. It impacted on the small scale famers as the prices were low.
Some implications relating to poor and less wage paying, as may be experienced in the case of a small business, would have to adhere to contract requirements in paying the wages. In order to avoid such cases, having to compare and adhere to contracts that match up what is being offered in the overseas, will become a better bargain to ensure the business if fairing in well.The small business may be affected by the prevailing limitations imposed on such business entities. There is the issue of having cheap labor in the larger market. This will force the small business to lower its price that may hurt its economic projections. In order to avoid this in the future, I would implement policies that gosh hand in hand with the one provided by the government.
There are value chains analysis implications that are also pertinent to some models that impacts on the nature of ties existing between the local firms and global markets. Such value chains distinguishes the distinctive tasks that are associated with the turning raw materials into the final goods for consumption purposes and even recycling, emphasises on value creation for the business entity. The possible way of hadling this isseu is by governaning of the chain relationships, the possible models that may provid a basis analysing power, and also, involvement of major dealers in making decisions by the local actors. Anylsing the global ties fearuring in production and trade of the business entity, would be a better move in making sure my business stays afloat. The prospects of upgrading the local firms within global chains, is also another viable option (Thoburn & Nadvi, 2003).
For such a small business entity, in the next five year, issue with increased competitions may impact the entity. I would advocate for proper cost adjustment to be associated with the resultant changes in the U.S. cotton demand structure. This could offer a substantial option for the small cotton growers and producers as they will search for viable access to newer export channels (Shui, Wohlgenant and Beghin, 1993). Also substantial effects that are based on the on cotton industry textile trade liberalization may also be a pertinent impacting factor on this small business entity in the next five years. The thing with textile trade liberalization is that, it induces the moderate changes in the total demand for cotton, and at the same not, it brings about the possible changes in the demand structure of the overall U.S. cotton. This will make this small cotton growing entity dependent more on the world’s market.
Rivoli, P. (2009). The Travels of a T-‐Shirt in the Global Economy. New Jersey: John Wiley & Sons Inc.
Shangnan Shui, M. K. (1993). Policy Implications of Textile Trade Management and the U.S. Cotton Industry. Textile Trade , 37-47.
Thoburn, K. N. (2003). Vietnam in the global garment and textile value chain: implications for firms and workers. Textile indusrty, 1-26.