The Impact of Liberalizing Preferential Rules of Origin on Trade and Upgrading in the Clothing Industry: A Review of the Evidence

Author(s):  
Louise Curran
2021 ◽  
Vol 2021 ◽  
pp. 1-23
Author(s):  
Shanshan Wang ◽  
Tian Luo ◽  
Daofang Chang

This paper examines the influence of information forecast accuracy on the profits of the supply chain under the circumstance of a multichannel apparel supply chain. Due to the emergence of multichannel, customer showrooming behavior is becoming increasingly prevalent. For example, consumers usually buy garments online after experiencing the service in the traditional bricks and mortar in the clothing industry. Meanwhile, there are often information barriers between the manufacturer and the retailer, which will affect enterprise decision-making. To solve these problems, this paper mainly investigates the information sharing and customer showrooming phenomenon, which includes four models: no information sharing without showrooming model (NN), information sharing without showrooming model (SN), no information sharing with showrooming model (NS), and information sharing with showrooming model (SS). The numerical analysis shows that under the impact of the forecast error, information sharing between channel members is more favorable than no information sharing when parameters satisfy certain conditions. From the perspectives of the retailer, the manufacturer, and the whole supply chain, customer showrooming behavior will bring them less profit. These conclusions mean that the retailer should share information with the manufacturer and adjust their service level and sales price to alleviate the effect of showrooming.


2021 ◽  
Vol 92 ◽  
pp. 06030
Author(s):  
Tomáš Ric ◽  
Daniela Šálková

Research background: The paper deals with the connections between international tourism and shopping, and therefore the purchase of clothing in relation to consumers. In the last few years, shopping has become one of the factors determining tourist’s decisions about choosing a travel destination. One-third of tourists have ever travelled just to buy clothes abroad. Such behaviour offers enormous economic potential for companies and the state economy. Shopping tourism is an integral part of globalization. Purpose of the article: The article’s aim is to characterize the elements of consumer behaviour in the framework of shopping tourism when buying clothing products. In addition to consumer preferences, the aim is to characterize the main types of clothing products that travellers are interested in and the impact of this consumer behaviour on the globalization. Methods: A questionnaire is compiled on the basis of stated hypotheses. The results will be evaluated using appropriate statistical methods such as the Kruskal-Wallis test, Spearman’s correlation coefficient and categorical principal components analysis. Findings & Value added: Research has shown that the first group of preferred garments consists of local products at a higher price level produced in low quantity. The second type of product is low-cost garments produced at a high cost under conditions that do not correspond to the principles of sustainable development. The clothing industry impact on global sustainable development is largely negative. In this regard, we can talk about the negative impact of globalization. This is no different from tourism.


2019 ◽  
pp. 149-176
Author(s):  
Christos Kalantaridis ◽  
Ivaylo Vassilev ◽  
Grahame Fallon
Keyword(s):  

2006 ◽  
pp. 295-314
Author(s):  
Olivier Cadot ◽  
Antoni Estevadeordal ◽  
Akiko Suwa-Eisenmann ◽  
Thierry Verdier

2018 ◽  
Vol 33 (3) ◽  
pp. 643-660
Author(s):  
Kazunobu Hayakawa ◽  
Nuttawut Laksanapanyakul ◽  
Hiroshi Mukunoki ◽  
Shujiro Urata

Abstract We examine the impact of free trade agreement (FTA) use on import prices. For this analysis, we employ establishment-level import data with information on tariff schemes, that is, the FTA and most-favored-nation schemes used for importing. Unlike previous studies, we estimate the effects of FTA use on prices by controlling for differences in importing-firm characteristics. There are three main findings. First, the effect of FTA use is overestimated when not controlling for importing firm-related fixed effects. Second, on average, firms’ FTA use reduces tariffs by 12 percentage points and raises import prices by 3.6–6.7 percent. Third, in general, we do not find a price rise resulting from the costs of complying with rules of origin.


2010 ◽  
Vol 10 (1) ◽  
pp. 1850188 ◽  
Author(s):  
Joseph Pelzman ◽  
Amir Shoham

The United States and the European Union have generated dozens of bilateral Regional Trading Agreements (RTA) across the globe. All of these trading arrangements have detailed agreements on rules of origin (ROOs). Those rules are required in order to ensure that the perceived benefits of the Free Trade Agreements (FTA) are not subverted or deflected. These rules have their greatest impact on a firm's cost structure when applied to the trade of intermediate goods. Determination of the origin of final goods becomes more complicated where imported intermediates are used and the WTO 'substantial transformation' rules are implemented. There is relatively little literature on the impact of these rules of origin on trade. (Cadot et al., 2006; Duttagupta and Panagariya, 2002; and Falvey and Reed, 1998, 2002). The existing literature hypothesizes that these rules can easily be used to restrict or suppress trade between countries, or to divert trade away from more efficient suppliers to less efficient ones. The empirical evidence to support the trade distortions is based on the number and complexity of the rules of origin. In order to determine the degree to which the post-RTA trade flows are indeed affected by ROO requires a micro-based review of increased transaction costs, rather than the number of rules. The intent of this paper is to suggest a formal methodology, which relies on the literature about tariff-equivalents, to evaluate rules of origin requirements. The suggested approach, applied at the 5-digit HS level will provide a more robust evaluation of ROOs. The suggested methodology could also be used to investigate the oft-asserted hypothesis that with time and reduced tariff barriers, the costs associated with ROOs will diminish.


2004 ◽  
Vol 43 (4I) ◽  
pp. 335-352
Author(s):  
Agustín Carstens

The world has been witnessing a wave of regionalism in recent years. Preferential trade arrangements (PTAs) have been a central element of most regional agreements. This paper looks at the growing international experience with PTAs. It first provides some basic facts on the extent of regionalism and discusses the motives for entering into regional arrangements. This is followed by an analysis of the impact of PTAs on trade, growth, and welfare, based on traditional and new trade theories. Although the paper finds that empirical studies seem to conclude that in practice PTAs are not harmful or necessarily very beneficial, the main conclusion of the paper is that regional integration can work if done right, and can be pursued in parallel with, or as a stepping-stone towards, multilateral trade liberalisation. The paper provides four major recommendations to ensure that PTAs have a positive impact on member (and nonmember) countries. These include: (i) a large and diverse membership; (ii) continued reduction in external tariffs; (iii) comprehensive product coverage, with simple and transparent rules of origin; and (iv) effective implementation.


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