Trading Partners Panel Presentation

European Union

by Emily Cook, Latonya Collins, and Brooklyn Morris

April 9, 2015

Trading Partners AbstractLaTonya Collins, Emily Cook, Brooklyn Morris4/9/15

Several countries within the European Union are leaders in the textile and apparel

industry .The highest-ranking countries are Germany, Italy, France and Spain. Free

Trade among the countries plays a huge role in the success of the textile and apparel

industry. The Eastern region consist of Czech Republic, Hungary, Poland, and

Romania. Modern day shopping has only become popular within the last few years due

to political unrest, bread lines and poverty. Were ruled by soviet union until replaced

by the Commonwealth of the Independent States. Pollution is a huge problem

throughout the region because it consist of many manufacturing industries, which can

cause issues with the environment. The Northern region region or Nordic countries

consist of Norway, Sweden, Finland, Denmark. The Southern region consists of Spain,

Portugal, Italy and Greece. The overall the area is very successful in exporting and has

agriculture is the area's main source of income. The often referred to as PIIGS (including

Ireland) because of the common instability of the countries starting in 2008 a high GDP.

The Western region includes England, Scotland, France, Germany, Switzerland.

Together they have the largest foreign population. The four elite countries in the textiles

and apparel industry: Germany, Italy, France, and Spain.

Fact Sheet:

The European Union consists of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

The Union is split up into four regions: Eastern, Northern, Southern and Western.

The Eastern region ( Czech Republic, Hungary, Poland, Romania)● formerly a Communist country● mostly a part of the Roman Catholic Church or Orthodox Churches● inhabitants speak different Slavic languages● the countries have been economically behind since the 18th Century ● modern day shopping has only become popular within the last few years due to

political unrest, bread lines and poverty ● they are known for having bad customer service due to the economically

unstable economy of the past ● they were under the Soviet Rule until the 1990’s when ● replaced by the Commonwealth of the Independent States● pollution is a huge problem throughout the region● consists of many manufacturing industries

The Northern region or Nordic countries ( Norway, Sweden, Finland, Denmark)● mostly developed countries ● has 5 time zones because the region is so big● the region has mostly harsh winters and cool summers● makes up the Nordic Council and the Nordic Passport Union which resulted in

one market of labor and free movement across borders ● all countries are constitutional monarchies and are either Democratic or Republic

. The Republic countries are Finland and Iceland● Denmark, Iceland and Norway are apart of NATO ● Finland and Sweden are neutral● overall the area is very successful in exporting and has a high GDP● Norway has one of the highest standards of living

The Southern region ( Spain, Portugal, Italy and Greece)● apart of the Roman Catholic or Orthodox churches

● speak Romance languages derived from Latin● extremely laid back region● mediterranean/ subtropical climates● Italy has the most inhabitants in the region but Spain is the largest country● agriculture is the area's main source of income● often referred to as PIIGS (including Ireland) because of the common instability

of the countries starting in 2008

The Western region (England, Scotland, France, Germany, Switzerland) ● the most diverse region● there are various types of food, languages and currency throughout the region● together they have the largest foreign population

The four elite countries in the textiles and apparel industry: Germany, Italy, France, and Spain.

Germany:● Germany has Europe’s largest economy and one of the largest populations● West Germany became embedded in the economics and politics of western

Europe; East Germany aligned with the communist Soviet Union● Germany has a highly regulated labor market and a skilled workforce, but

unemployment is a major problem● Germany is a global leader in the development and export of textile and apparel

production machinery, focusing on sewing and garment machinery, laundry and textile cleaning equipment, and machines for processing and finishing technical textiles

● They also have the largest European import market for U.S. origin apparel● German textile manufacturers are focused on increasing their markets share of

high-quality fabrics● The International Trade Fair for Sports equipment and Fashion, one of the major

trade shows, is held in Munich.Italy:

● An economic revival followed Italy after a democratic republic replaced a dictatorship after World War II

● The Italian economy is ranked fourth in the European Union, and the unemployment rate is higher than 7.5%

● Italy has problems with illegal immigration, low income, and low technical standards in the welfare-dependent agricultural south.

● Textiles, apparel, and footwear are regarded as important industries in Italy● Italy tends to concentrate on sources of high-quality fashion production● Italy is the leading exporter of upscale fashion apparel and shoes, with the U.S.

as one of its primary customers

France:

● Paris is the principle import, marketing, and distribution center in France

● 2nd highest total labor costs

● Lyon is the primary commercial and industrial center

● L’Avenue des Champs-Elysées is the most expensive retail space in Europe

● China supplies much of France’s moderate-priced goods

● Second largest retailer in the world is the French company, Carrefour

Spain:

● Fifth-ranked economy in the European Union with a GDP of 66.3% and an

unemployment rate of 20%

● low labor costs, similar to that of eastern Germany

● economy relies heavily on production of textiles and apparel, providing 2% of the

country’s employment.

● Italy is the main materials supplier

● China is largest non-European supplier

● Birthplace of fashion-leading company, Zara

Questions:

1. Do you think the way that the European Union negotiates trade is successful?

Why or why not?

2. How does the EU maintain their high status in the apparel industry?

3. What are some similarities between the EU and the US pertaining to trade?

Differences?

4. From your consumer perspective, does it make a difference whether a label says

“Made in Europe” or “Made in France”? Explain your perspective.

5. What factors do you think contribute to the fact that Germany has the largest

economy in the European Union?

Works Cited:

Kunz, G., & Garner, M. (2011). Going global: The textile and apparel industry (2nd ed.). New York: Fairchild Books.

European Union, EU Manufacturer, European Textile Industry, Application Of Intelligent Systems. (n.d.). Retrieved April 9, 2015, from http://www.fibre2fashion.com/industry-article/9/865/application-of-intelligent-systems-as-the-basis-for-improving-the-position1.asp

European Commission Directorate-General for Trade. (n.d.). Retrieved April 9, 2015, from http://ec.europa.eu/trade/policy/eu-position-in-world-trade/

Cultures in Europe & Russia. (n.d.). Retrieved April 9, 2015, from http://traveltips.usatoday.com/cultures-europe-russia-27444.html

Kubilius, K. (n.d.). Customer Service - What to Expect from Customer Service in Eastern Europe. Retrieved April 9, 2015, from http://goeasteurope.about.com/od/easterneuropeanhistory/p/customerservice.htm