The textiles industry consists of fibers (e.g., cotton yarn, rayon and acetate, synthetic fibers, and wool yarn), fabrics and clothing. Asia-Pacific is the world=s largest textiles market and generates 43.4% of the global revenues. The Asia-Pacific textiles market grew by 6.1% in 2007 to reach a value of $139 billion. Europe generates 31.4% and the United States generates 25.2% of global textile revenues, respectively. China is Asia-Pacific=s largest textiles market generating 41.8% of the regional revenues. Entry barriers to the textiles industry are not particularly high and capital requirements are low enough for individuals to enter the industry. Textile fibers and fabrics are often hard to differentiate, it is relatively easy for firms to increase production capacity, and storage costs are high. These factors contribute to a high degree of competitive rivalry in the industry.The Multi-Fiber Agreement (MFA) was created in 1974 and it established a system of quotas for textile exports. The agreement was designed to protect textile producers in developed nations from
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