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Unformatted text preview: 10/9/2011 1 Chapter 8 Chapter 8 Politics and Political Positioning Objectives Objectives Introduce the role of politics in trade Explore the concept of unfair competition Examine political positions adopted by 2 Examine political positions adopted by different segments of the textile and apparel industry, including labor activists and trade associations Introduce regionalization of global trade Introduction Introduction Different segments of the textile complex often take different political positions Traditionally manufacturers and retailers held opposite positions on free trade 3 Trade associations and labor unions also take conflicting politically active roles In the WTOs NAMA (Non-Agriculture Market Access) negotiations both the United States and the EU are seeking significant new competitive opportunities for domestic export businesses through cuts in tariff rates and reduction of nontariff barriers from potential recipients of exports Economic Systems Economic Systems of Government of Government In totalitarian government systems one family or some other entity maintains complete political and economic control under a dictatorship Capitalism is an economic system in which Private ownership of property exists Income from business operations accrue to the individuals or firms that own it Individuals and firms are free to compete for 4 economic gain Profit motive is basic to economic life Mostly associated with democratic political system In som or communism , resources are cooperatively or state owned Political Political Manipulation of Manipulation of Trade Relationships Trade Relationships Politics are everywhere. Political strategy makes it possible for governments, firms, other organizations, and individuals to deal with and manipulate important and powerful components in their environments A government subsidy is a payment 5 from a government to a company (reverse tax)....
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- Fall '11