2.1: Fast Fashion (Term Test 1)

Commodity Fetishism

The Marxist concept that refers to the tendency to overlook the labor exploitation and environmental degradation involved in the production of commodities, and instead focus solely on their market value.

Free Trade

The idea that goods and services move between nations with no restrictions whatsoever.

The unrestricted movement of goods and services between nations, without any barriers or restrictions.

• Something produced in the United States would sell at the same price if shipped and sold in Canada

Value of a Commodity

The actual value of a commodity is determined by the amount of labor that was used to produce it, rather than its market price.

Textiles and Economic Nationalism

The historical practice of certain countries, such as the UK, implementing policies to prevent their colonies from producing textiles that would compete with their own textile industry, resulting in the destruction of local textile industries in those colonies.

Multi Fiber Arrangement (MFA)

An agreement signed by high-income nations between 1974 and 1994, which imposed quotas and voluntary export restraints on textile imports from lower-wage nations, in order to protect the textile industry in wealthier countries.

Voluntary Export Restraints

Measures imposed by governments to limit the quantity of exports from a specific country, often in order to protect domestic industries from competition, not so voluntary

World Trade Organization (WTO)

An international organization established in 1995 to promote and regulate global trade. It replaced the General Agreement on Tariffs and Trade (GATT) and has a stronger commitment to free trade, imposing penalties on countries that do not comply with its rules.

Footloose Industry

An industry that requires low capital investment but high labor requirements, and can easily relocate to different locations in search of lower costs and favorable economic policies.

Export-Led Growth Strategy

An economic strategy that focuses on selling goods and services to higher-wage economies, resulting in income flowing from high-wage nations to low-wage nations.

Export Processing Zone (EPZ)

A designated geographical area with different economic policies than the rest of the country, aimed at creating a low-cost environment to attract footloose investments. This includes incentives such as lower taxes, wages, and exemptions.

Subsidy

Financial support given to producers by the government, whereas in the EPZ context, the focus is on creating a favorable business environment to encourage investment rather than directly subsidizing producers.

Footloose Industry

A footloose industry is one which is not tied to any particular location or country and can relocate to another place without effect from factors of production such as resources, land, labour, and capital