Question

Define types of companies involved in apparel importing:

A) Owns a portfolio of brands and might do some apparel manufacturing or source garment assembly from vendors.
B) Develops, sources, and delivers products to be retailed by other companies.
C) Provides services necessary to procure and deliver products (or services).
D) Develops products under its own label and sources apparel assembly to make these products.

Answer 1

Companies involved in apparel importing include those owned brands that may do some manufacturing, firms that design and source products for retail, logistics service providers, and private label companies creating their own products. Mistreatment of garment workers is linked to brands pushing for lower costs. Trade policies have a complex impact on jobs and consumer prices.

Step-by-step explanation:

The types of companies involved in apparel importing are varied, but typically fall into several categories:

• Portfolio brand owners: These companies own a range of brands and may engage in some apparel manufacturing themselves. However, they often source garment assembly from various vendors globally.
• Product developers and sources: These firms specialize in designing, sourcing, and delivering products to be resold by other companies. They don't typically sell directly to the public.
• Logistics service providers: These companies offer the necessary services to procure and deliver products or services within the apparel supply chain.
• Private label companies: These businesses develop products under their own brand and outsource the production of these items to other manufacturers.

Clothes manufacturing, particularly when outsourced by major brands to foreign factories, can lead to garment workers being mistreated. This happens due to brands like Nike, Lululemon, H&M, and others negotiating for lower manufacturing costs and faster production times, to the detriment of factory working conditions.

In response to advocacy from organizations and potential consumer backlash, some apparel companies have taken steps to ensure their manufacturers adhere to ethical labor practices. Despite this, full transparency is challenging, and it is hard to verify the actual conditions in all facilities, especially when subcontractors are used.

The economic impact of the apparel industry includes job losses in countries with higher manufacturing costs like the United States. For instance, the BLS reported a significant decline in U.S. apparel and textile jobs from 2007 to 2012. Trade policies such as tariffs and quotas have both safeguarded and cost U.S. jobs, while also increasing clothing costs for consumers.