International Outsourcing of Clothing Industry - Dissertation Example

At international level several attempts have been made by the international trading bodies like WTO to liberalize the trade system and as a result there is increase in the outsourcing of different industries. Globalization has drawn lasting effects on the clothing industry as well and global outsourcing is occurring in the industry at increasing rates. Outsourcing of different industries draws significant impacts of the performance of that industry as well as on the entire economy. There are different view points about the potential effects of global outsourcing.

Some researchers (e.g. Antras, Helpman, 2004) believe that increased global outsourcing cause unemployment of thousands of domestic highly skilled professionals as the companies offer the employment opportunities to the labor of another country from where they might get the labor at low wages or salaries. On the other hand some social scientists (e.g. Bruce S. Berton, 2004; Amiti, Wei, 2005) strongly believe that the economies in the 21st century must need outsourcing in different industries because it bring variety of benefits and advantages to the countries like the consumers get more choices available in front of them and they also have an easy access to purchase the products at different levels of distribution.

Along with these effects of global outsourcing attempts are also made to examine the impacts of outsourcing on the workforce of the countries (e.g. Campa and Linda S. Goldberg 1997; Maria Pia Hernandez, 2004). Despite the fact the a considerable portion of literature is concerned with examining the effects of global outsourcing on industries and the economies, there are few researches that study the impact of global outsourcing of clothing. The dissertation unfolded the international outsourcing of the clothing industry from the US and also provided the information about the various issues that are related to the clothing industry outsourcing.

It came out from the study the clothing industry is being outsourced internationally from America for many years ago. It means that there is enough awareness in the businesses of the American clothing industry that they paid attention towards the outsourcing and discovered that the outsourcing will provide them certain benefits. As a result of this thinking outsourcing of clothing industry by the US, clothing firms become a common practice and many of the famous brands also get their clothing assembled in other countries where the manufacturing cost is less than America.

The two important factors that were pointed out as the main player that encourage the outsourcing of industries (Technology advancement and Trade liberalization measures) also played an active role in the international outsourcing of the US clothing industry. The clothing firms of US is not only facilitated by the technology to get into the outsourcing practice but the favorable investment and trade condition also makes it possible that the companies to look towards international outsourcing and save the money that is saved from the labor salaries.

The clothing industry mostly looks towards the positive consequences of the international outsourcing and they do not take much care of the matter that what will happen to the skill and unskilled labor of home country.