2.1: Fast Fashion (Term Test 1)

2.1.1: Follow the thing:

The Marxist concept of commodity fetishism:

  • We think very little about how this commodity’s actual value is derived from practices of labour exploitation and environmental degradation

  • What you should be focusing on is that the actual value of the commodity is the amount of labour that was used to create a commodity

  • your purchase of a shirt “made in china” is a “vote” for china, basically supporting the practices and decision making process that resulted in making the shirt

  • why are your clothes made where they are made? - Due to the free trade environment that we live in

  • Where are your clothes going to be made? - In a low wage country

2.1.2: Free Trade

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

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

  • World is currently in a more “free-trade” environment, why we get more imports from china

Textiles and Economic Nationalism:

  • When UK was a colonial power, had a policy that none of its colonies could produce textiles that competed with UK textiles

  • Resulted in destroying the India Textile industry

The multi fibre arrangement 1974 and 1994:

  • signed onto by all high income nations

  • “we will only accept so many textiles from lower wage nations”

  • system of quotas and “voluntary” export restraints that sought to protect the textile industry in wealthier countries from imports from poorer nations

  • “voluntary export restraint” is not voluntary, imposed by government to enforce

  • This is NOT a free trade deal, nations are protecting their own textile production

  • Signed under the General Agreement of Tarrifs and Trade

  • Claimed to advocate for free Trade, but allowed countries to sign onto a more Economic Nationalist deals

  • good for some countries; disastrous in other countries

  • attractive to the nation limiting itself; but only benefits occur out of screwing over their trading partners

  • belief in needing an actual free trade organization to create rules for nations to follow so free trade can exist

World Trade Organization (1995)

  • Replaced the GATT

  • (called the Uruguay round of the GATT in text)

  • Far greater commitment to free trade

  • only global organization dealing with the rules of trade between nations

  • Will impose penalties on countries that dont follow the rules

  • allow production to move around the world much more freely

  • Canada’s textiles are so cheap because of free trade

Footloose Industry - Low capital, high labour requirements

  • Textile plant is crumbling, could start up that business anywhere, searching for low cost environment

    requirements for footloose industry

    • 1. low capital

    • 2. ship food easily

  • Export led growth strategy - focuses on selling to higher wage economy, income flows out of high wage nation into low wage nation

  • China - Export Processing Zone: A set Geographical Area that has different economic policy rules than the rest of country, reason is different rules create a low cost environment that makes businesses profit more (ex different tax rules), will lead to shipping out of country to higher wage country

  • create a low cost enclave that attracts footloose investment

  • low tax, low wage, exempt

  • difference bwtween subsity is that they are paying producers—here they are freating an environment that encourages businesses