The abolition of textile and clothing quotas: Effects on price, competition and outsourcing for Swedish companies with production in the Asian region
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
On January 1st 2005 the abolition of the textile quotas took place, thus resulting in total freedom for China and India, as major textile producers, to export unlimited volumes of textiles and clothing. The purpose of the thesis is firstly to understand how competition and prices in the Swedish market will be affected by the abolition. Secondly to discern any risks associated with outsourcing for Swedish textile companies. The thesis is mainly delimited to the Swedish textile Market and there is a focus on China when discussing producing countries. The design of the thesis is constructed so the conclusions are based upon data from researched companies and organizations, historical data, and political data. The researched data consists of 16 Swedish textile companies and an interview with Textilimportörerna. The approach used in the thesis has been both Hermeneutic and Positivistic. Hermeneutics is used in analyzing the empirical data from the companies; the positivistic side is the historical numerical data and statistics. Due to the currency of the issue the significance of the thesis is high. A majority of the companies follow the developments regarding the textile quotas closely. The major conclusions that have come from the thesis are that prices toward end consumers will decrease, competition on the Swedish textile market will harden and the outsourcing will be focused even more toward China.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:su:diva-5706OAI: oai:DiVA.org:su-5706DiVA: diva2:195585