Gereffi, GaryFrederick, Stacey2012-03-192012-03-192010-04-01https://hdl.handle.net/10986/3769This paper examines the impact of two crises on the global apparel value chain: the World Trade Organization phase-out of the quota system for textiles and apparel in 2005, which provided access for many poor and small export-oriented economies to the markets of industrialized countries, and the current economic recession that has lowered demand for apparel exports and led to massive unemployment across the industry s supply chain. An overarching trend has been the process of global consolidation, whereby leading apparel suppliers (countries and firms alike) have strengthened their positions in the industry. On the country side, China has been the big winner, although Bangladesh, India, and Vietnam have also continued to expand their roles in the industry. On the firm side, the quota phase-out and economic recession have accelerated the ongoing shift to more streamlined global supply chains, in which lead firms desire to work with fewer, larger, and more capable suppliers that are strategically located around the world. The paper concludes with recommendations for how developing countries as well as textile and apparel suppliers can adjust to the crisis.CC BY 3.0 IGOACCOUNTINGAGRICULTURAL SUBSIDIESAGRICULTUREAPPARELAPPAREL EXPORTAPPAREL EXPORTSAPPAREL INDUSTRIESAPPAREL INDUSTRYAPPAREL MANUFACTURINGAPPAREL MARKETAPPAREL PRODUCERSAPPAREL PRODUCTSAPPAREL TRADEBILATERAL TRADEBRANDBRAND NAMEBRAND NAMESBRANDSBUSINESS ENVIRONMENTBUYING POWERCOMMERCECOMPARATIVE ADVANTAGECOMPETITIVE PRESSURESCOMPETITIVENESSCONSUMERSCOST ANALYSISCOUNTRY MARKETSCRISESCURRENCYCURRENCY APPRECIATIONDEBTDEVELOPMENT STRATEGYDISPLACED WORKERSDIVISION OF LABORDOMESTIC CONSUMPTIONDOMESTIC INDUSTRIESDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC PRODUCTIONECONOMIC CRISISECONOMIC POLICYECONOMICSECONOMIES OF SCALEEMERGING MARKETSEXPORT GROWTHEXPORT INDUSTRIESEXPORT MARKETSEXPORT PROCESSINGEXPORT PROCESSING ZONESEXPORT SHARESEXPORT VALUEEXPORT VOLUMESEXPORTERSFINANCIAL CRISISFINISHED PRODUCTFINISHED PRODUCTSFIXED COSTSFOREIGN DIRECT INVESTMENTFOREIGN FIRMSFOREIGN INVESTMENTFOREIGN INVESTMENTSFOREIGN INVESTORSFREE TRADEGENERALIZED SYSTEM OF PREFERENCESGEOGRAPHIC MARKETSGLOBAL EXPORTSGLOBAL MARKETSGLOBAL TRADEHUMAN CAPITALIMPORT DUTYIMPORT PENETRATIONIMPROVED WORKING CONDITIONSINCOMEINDUSTRIAL ECONOMIESINDUSTRIALIZATIONINFLATIONINTERMEDIATE GOODSINTERMEDIATE INPUTSINTERNATIONAL INVESTMENTINTERNATIONAL ORGANIZATIONSINTERNATIONAL TRADEINVENTORYITCLABOR COSTSLABOR FORCELABOR LAWSLABOR ORGANIZATIONLABORERSLAYOFFSLIQUIDITYMARKET POWERMARKET RESEARCHMARKET SHAREMARKET SHARESMARKETINGMERCHANDISEMERCHANDISE EXPORTSMERCHANTSMERGERSNATIONAL MODELSNEW PRODUCT DEVELOPMENTOPENNESSPREFERENTIAL ACCESSPREFERENTIAL TARIFFPREFERENTIAL TARIFF TREATMENTPRODUCT QUALITYPRODUCTION COSTSPRODUCTION PROCESSPRODUCTIVITYPROFIT MARGINSPROTECTIONISMPURCHASINGPURCHASING POWERQUOTASREBATEREBATESRECESSIONREGIONAL TRADEREGIONAL TRADE AGREEMENTSRETAILRETAILINGSAFETYSALESALESSHARE OF WORLD EXPORTSSKILLED WORKERSSPECIALIZATIONSPREADSUBSTITUTIONSUBSTITUTION EFFECTSUPPLIERSUPPLIERSSUPPLY CHAINSUPPLY CHAINSTAX INCENTIVESTRADE AGREEMENTTRADE AGREEMENTSTRADE PACTSTRADE POLICYTRADE RESTRICTIONSTRANSACTIONS COSTSTURNOVERUNEMPLOYMENTVALUATIONWAGESWAREHOUSEWHOLESALE PRICEWHOLESALERSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5281