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Trade liberalization and patterns of strategic adjustment in the US textiles and clothing industry

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  • Seyoum, Belay

Abstract

Trade liberalization has exposed US textiles and apparel industries to fierce competition from a growing number of international suppliers. Many traditional suppliers are also vulnerable to strong competition from China since they no longer enjoy preferential access to the US market. After discussing overall trade liberalization in the industry including the recent phase out of quotas, the paper discusses the range of strategic changes being adopted by US companies to remain competitive. It also assesses some of the important developments in the US textiles and apparel industry including the increasing role of China as a dominant supplier to the US market. The paper concludes by providing some recommendations to enable US textile and apparel firms and traditional suppliers in developing countries to cushion the sudden effects of trade liberalization.

Suggested Citation

  • Seyoum, Belay, 2007. "Trade liberalization and patterns of strategic adjustment in the US textiles and clothing industry," International Business Review, Elsevier, vol. 16(1), pages 109-135, February.
    • Handle: RePEc:eee:iburev:v:16:y:2007:i:1:p:109-135
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