International Economics: Textile Products Manufacturing

International Economics
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International Economics
The clothing and textile industries play significant roles in the growth of the American economy. However, these sectors have been shifting their manufacturing abroad. This shifting will be explained using the idea of opportunity cost, which refers to potential advantages that an investor, business, or person gets when one selects an alternative over the other. For instance, one of the primary reasons the clothing and textile industries have shifted their manufacturing overseas is due to cheap labor and quality products.
The shift of manufacturing abroad has significantly affected the economic well-being locally. According to Maurice Malone, Denim designer at Williamsburg Garment Company (WGC), manufacturing textile products outside the United States of America (USA) is profitable for numerous companies (Sok, 2017). Every business prioritizes maximizing profits, and some firms overseas are offering their products at affordable prices. Since Americans want cheaper products, American companies are obliged ...