- September 11, 2012
- Posted by: essay
- Category: Free essays
In the current situation, it is possible to suggest two alternatives, which could have replaced China, Mexico and Pakistan.
|Country||Value Mln $||Quantity Kg||Change %|
The supply of knit fabric from Mexico steadily decreases – over 30% in 2007 and in 2008, while the value of a unit constitutes 0.01 that is a low price to pay. Consequently, it is possible to increase import from Mexico.
The same trends can be observed in Pakistan, for import from this country has dropped even more consistently, exceeding 40% decrease.
Moreover, the value of a unit constitutes 0.004 that is even lower compared to Mexico and such a difference can cover the costs on the transportation of knit fabric from Pakistan to the USA with minimal losses and, what is more, it can substitute Chinese products.
Philippines had the most substantial growth of import of knit fabric in 2007-2008, which exceeded 230% annually. The similar trend could be observed in relation to Vietnam, which increased the export of knit fabric to the USA more than by 122% in 2008. The import from developed countries, such as Korea, Canada, France and Italy is accompanied by the problem of a low amount of items but the high costs of import because the price of items is higher compared to similar products imported from developing countries. No wonder, import from these countries steadily decreases by 16,95%, 67,8%, 10,85%, and 21,65% respectively. As for developing countries the import form these countries growth by 122,79% for Vietnam, 101,64% for Argentina, 231,87% for Philippines that leaves little room for substantial increase of import from these countries. In such a context, even 9,75% drop of import from Brazil indicates that local suppliers can hardly be adequate substitutes to Chinese products because the potential of local industry is limited.
Thus, taking into account all above mentioned, it is possible to conclude that the use of Mexico and Pakistan as suppliers of knit fabric instead of China is possible.