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1、TheGlobalTextileandClothingIndustryposttheAgreementonTextilesandClothingi.INTRODUCTIONAftermorethanfortyyearsofimportquotas,thetextileandclothingsectorwillbecomesubjecttothegeneralrulesoftheGeneralAgreementonTariffsandTradefrom1January,2005.Liberalization
2、hasbeencontroversialbecausebothtextilesandclothingcontributetoemploymentindevelopedcountries,particularlyinregionswherealternativejobsmaybedifficulttofind.Textilesandclothingarealsoamongthesectorswheredevelopingcountrieshavethemosttogainfrommultilateraltr
3、adeliberalization.Theobjectiveofthispaperistoassessthelikelyimpactofliberalization,takingintoaccountrecenttechnologicalandmanagerialdevelopmentsinthesector,andfocusingonrecentdevelopmentsinsupplychainmanagementintheclothingandtextilessectors.Theclothingin
4、dustryislabour-intensiveanditoffersentry-leveljobsforunskilledlabourindevelopedaswellasdevelopingcountries.Thesetechnologicalfeaturesoftheindustryhavemadeitsuitableasthefirstrungontheindustrializationladderinpoorcountries,someofwhichhaveexperiencedaveryhi
5、ghoutputgrowthrateinthesector(e.g.Bangladesh,SriLanka,VietNamandMauritius).3Thesecharacteristics,however,havealsomadeitafootlooseindustrythatisabletoadjusttochangingmarketconditionsquickly.ii.THESTRUCTUREOFTHETEXTILEANDCLOTHINGSECTORTheclothingsectorisbot
6、halabour-intensive,lowwageindustryandadynamic,innovativesector,dependingonwhichmarketsegmentsonefocusesupon.Inthehigh-qualityfashionmarket,theindustryischaracterizedbymoderntechnology,relativelywell-paidworkersanddesignersandahighdegreeofflexibility.Theco
7、mpetitiveadvantageoffirmsinthismarketsegmentisrelatedtotheabilitytoproducedesignsthatcapturetastesandpreferences,andevenbetter–influencesuchtastesandpreferences–inadditiontocosteffectiveness.Thecorefunctionsoffirmsservicingthismarketsegmentarelargelylocat
8、edindevelopedcountriesandofteninlimitedgeographicalareasorclusterswithinthesecountries.TheEmilia-RomagnadistrictinthesocalledThirdItalyisoneofthemostprominentandprosperoustextileandclothingclustersintheworld,whileIt
