CTD 447 Lecture 12: CTD 447 Chapter 12 Notes

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University of Alabama
Clothing, Textiles and Interior Design
CTD 447

CTD 447 Chapter 12 Notes Introduction • The Middle East and Africa is the historical origin of three of the world’s major religions: ➢ Judaism ➢ Christianity ➢ Islam/Muslim • All phases of life in the Middle East and Africa, including textile and apparel business, are heavily impacted by the cultural patterns rooter in religious affiliations • Doing business here required recognition of some basic patterns of behavior • Cultural differences: 1. Muslims are obligated to pray five times a day 2. Friday is the day of faith 3. When doing business in the Middle East, handshakes are always used and can last a long time 4. The Middle Eastern culture places more value on someone’s word as opposed to a written agreement 5. If you are introduced to a woman as a male, avoid touching and prolonged eye contact with women Political and Economic Overview • This trading bloc encompasses some of the richest and poorest people in the world: ➢ Middle East: countries lying east of Mediterranean and Red Seas, south through Arabian Peninsula, and eastward, toward South Asia ➢ North Africa: countries on northern border of continent, adjacent of Mediterranean Sea; includes Morocco, Tunisia, and Egypt ➢ Sub-Saharan Africa (SSA): includes remaining nations of Africa and island nations of Madagascar and Mauritius, off the eastern shore Background and Current Conditions • By geographic size, Saudi Arabia is by far the largest, followed by Ethiopia and South Africa • Nigeria has the largest population, followed by Ethiopia, Egypt, and Turket • With a few exceptions, life expectancy and literacy are among the world’s lowest • Most developed nations in the region are Israel, the United Arab Emirates (UAE), and Saudi Arabia Textile and Apparel Trade Activity • Developed nations, such as the UAE, tend to focus on the consumption of textile and apparel products • Developing nations, such as Turkey, Mauritius, and South Africa, tend to use the textile and apparel industry as an industrial engine to fuel their development • Newly developing nations such as Jordan, and least-developed nations, such as Nigeria, are looking to make use of apparel production as an avenue to development • The dominant countries involved in apparel imports were the developed countries: Israel, Saudi Arabia, and the UAE • Some less developed countries are highly dependent on apparel exports as a major share of their total merchandise exports: Lesotho, Mauritius, Turkey, Tunisia Middle East • Stretches from Turkey, south, throughout the Arabian Peninsula, and east, through Iran • Countries have free trade agreement with US: Israel, Jordan, Bahrain, Yemen, and Oman • Developed countries: Israel, United Arab Emirates (UAE), and Saudi Arabia • Most countries are very isolated from the global economy • Very few countries are members of WTO ➢ Israel, Jordan, Saudi Arabia, Turkey, UAE, Oman, Qatar, Bahrain • Middle East Free Trade Area Initiative ➢ Goal 2013: US – Middle East Free Trade Area Middle East – Textiles and Apparel • Politically and socially unstable • Not very much textile and apparel production • Qualified Industrial Zones (QIZs) ➢ Jordan, Egypt, and US  Israel ➢ Geographic areas within Jordan and Egypt that receive duty- and quota- free trade status with US if textile and apparel products include some Israeli content • Developed countries in the Middle East ➢ Focus on consumption versus production ➢ Market for luxury brands The United Arab Emirates (UAE) • Prosperity due to oil revenues, moderate foreign policy, and a trade surplus allows it to play a vital role in regional affairs • Firms in the UAE import fewer textiles than they export • Target market for global upscale apparel retailers Saudi Arabia • Most of the industrial wealth comes from oil • The apparel market is distinctively divided between the upper, high-end market and the lower-priced sector • In public most women are covered by the abaya; everyday women’s dress tends to be somewhat conservative Israel • Despite an ongoing, Israeli-Palestinian conflict, Israel has intensively developed its agricultural and industrial sectors • Israel is home to considerable retail activity – shopping malls, specialized chain stores, and franchises • Known for its use of advanced technology and production of high-quality products Turkey • More developed than Middle Eastern neighbors • Differs from neighbors because of secular government • Wants to become member of the EU • Strong textile and apparel industry ➢ Domestic supply of textiles and cotton ➢ Proximity to the EU market – fast fashion ➢ Foreign direct investment from US textile and apparel firms Turkey – Textile and Apparel • Has quickly develo
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