Abstract

The caselet discusses the post-MFA scenario and its impact on the world textile market. It specifically explains the impact that the removal of quotas has had on the European and American markets and points to the changing equations among countries, which are either exporting or importing textile products. The caselet looks at the competitive scenario in the international market and the strategies that the textile companies have formulated to cope with the changing scenario.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Impact on the worldwide textile industry due to phasing out of MFA
• Changing scenario in the European and American textile industry post-MFA
• Changing equations among countries that are exporting or importing textile products
• and Measures taken by countries to control cheap imports from developing countries and to reduce volatility post-MFA.

Keywords

Multi-Fibre Arrangement (MFA), Garments and textile industry, WTO, Apparel manufacturers, Gap, Wal-Mart, Nike, Mexico, Honduras in Central America, Dominican Republic in the Caribbean, Honduran Manufacturers Association