the role of sourcing agents in global apparel supply chains

States, Mexico’s costs are competitive with China (Abernathy et. al., 2005). The
economic development of low cost production locations is often linked to political trade
agreements. Given the nature of the apparel industry, developing countries have seen
significant economic growth in the export of apparel products.
Apparel manufacturing is a labor-intensive industry, with little risk in initial
capital investments as equipment needed is relatively inexpensive as compared to other
manufacturing industries (Abernathy et. al., 2006). Research on the consequences of the
apparel industry’s utilization of developing countries for production has been conducted.
In a study by Gereffi (1999), the author addressed issues of initiating and sustaining
economic growth in developing countries. Gereffi found that manufacturing networks
are historically and socially embedded in the process of manufacturing, especially in the
apparel industry. Manufacturing networks often include U.S. firms placing orders with
overseas buying offices who subsequently distribute production to offshore low wage
factories (Gereffi, 1999). The responsibility of an overseas buying office is the same as
the role of the sourcing agent in global apparel supply chains. However, as a country
begins to improve economically, often they lose production orders if agreements to
provide duty exemptions are not maintained or protected against competing trade
agreements. Many large export nations such as Taiwan and South Korea have seen
reductions in exports due to rising labor costs associated with economic development.
Many trade agreement negotiations are based on the anticipated economic consequences
to developing nations as well as developed nations as stakeholders. The main competitor
for these newly developed nations is China. China offers low labor costs, shorter lead
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