Trading Panel Presentation

4/9/15

Asia and Oceania

Brooke Moore, Courtnei Dunn, & Katie Brumfield

Fact Sheet:

Asia/Oceania

Includes: East Asia: China, Hong Kong, Japan, Macao, South Korea, Taiwan/Taipei; Southeast Asia: Indonesia, Cambodia, Malaysia,

Philippines, Singapore, Thailand, Vietnam; South Asia: Bangladesh, India, Nepal, Pakistan, Sri Lanka; and Oceania: Australia, New Zealand

Ethnic Heritage/Culture

o Very Diverse

o Centered around respect and formality in Asia

o Ranges from strictly Eastern backgrounds to Australia’s heavily

influenced European background

o Religion

Christian (Primarily in Oceania)

Hinduism, Buddhism, Lamaism, Taoism, Islam, and

Catholicism (Primarily in Asia)

Politics

o Frequently changes in some Asian countries due to an unstable

political environment. Ex. Pakistan

o Indonesia is the world’s 3rd largest democracy behind the U.S.

and India

o Government: (Very Diverse)

Communism

Democracies

Military Dictatorship

Monarchies

Socialism, etc.

Economic Conditions

o Most are developing countries with the exception of Oceania

o Oceania:

Australia has the 3rd highest per capita GDP after Singapore

and Hong Kong

o Most of the jobs in these countries come from the apparel and

textile industry

o The countries in this trading bloc are the top exporters of textile

and apparel goods in the world

o China is the number one trading nation in the world and is only

growing with the elimination of quotas

Retail in China

Retailing in China is booming due to the growing

Chinese economy

o Countries in this sect are finding their place and trying to

compete with China

o Singapore has the highest per capita GDP ($50,300) in this

trading bloc

o Japan, South Korea, and Taiwan have developed their economies

beyond the point at which low cost apparel production is

feasible, so they have turned to outsourcing most apparel

production and developing technical textiles

o Hong-Kong

One of the leading global exports of textiles and apparel

behind the EU and China

Now under Chinese rule after 100 years of British Rule

Hong Kong invested heavily into developed countries early

on

MFA phase out did not harm because Hong Kong

corporations own many of the Chinese factories

o South Korea is the 12th largest economy in the world

Major supplier of man-made fabrics

Large spinning and weaving sectors

Trade

o Asia-Pacific Economic Cooperation (APEC )

Not a trade agreement but an association promoting

economic growth through things like free trade

o Asia-Pacific Trade Agreement (APTA)

Oldest preferential trade agreement

o Association of Southeast Asian Nations (ASEAN)

Functions to enhance trade options for its 10 member

countries

o The U.S. has several free trade agreements with Asian and

Oceanian countries like South Korea, Singapore, and Australia.

Demographics

o In South Asia, 3 out of 4 countries have a literacy rate of less

than 50%, but in the rest of Asia and Oceania, the literacy rate is

at least 78%, and primarily 90%.

o Because countries are primarily developing, many live in poverty

o India

Still considered a third world country

Many can’t afford brand name clothing and still prefer local

tailors for custom made suits and trousers

Unique fashion culture

Alternative to China, but much more difficult to work with

Weak infrastructure

Complicated paperwork

o Unemployment rate is highest in Nepal at 46% and lowest in

Bangladesh at 2.5%. China has a 4.3% unemployment rate.

Numbers are often skewed because the poverty-stricken

rural population is often not counted

o The populations in this trade bloc boast the two largest countries

in the world: China and India. China: 1.35 billion people; India:

1.25 billion people

Many smaller countries with the smallest, Macao, having

600,000 people.

o Life expectancy higher in East Asia and Oceania than in the other

parts of Asia

East Asia and Oceania are relatively richer and more

developed

Types of Textiles/Apparel Produced

o #1 exporters of apparel and textiles in the world

o India is known for providing labor-intensive embellishments

o India focuses primarily on Cotton

Around 30% of its exports come from textile sector

World’s top organic cotton producer

o China is the dominant apparel supplier in the world.

o Many countries in Asia are textile exporters.

o Taiwan and South Korea are strong in yarns produced for use in

knit-to-shape garments

o Indonesia is the largest producer of textiles and apparel in the

ASEAN region

Cotton fabric accounted for the largest part of textile

production

o Japan’s textile industry focuses on:

Production of high tech synthetic fibers/fabrics

Ranked nine in global exports of textiles/ 3rd in global

imports of clothing

o Oceania:

Australia specializes in wool products/textiles

Top exporter of wool fiber/fabric in the world

50% of global total of wool

Imports more than it exports which is a trend in developed

countries

New Zealand

Domestic production is very high quality and

primarily for domestic consumers

Bibliography

(2015). About Australian politics. AustralianPolitics.com. Retrieved from

http://australianpolitics.com/about.

This article focused on the political parties that are in Australia and New Zealand.

The main party that is still in the head seat at the House of Representatives is the

Australian Labor Party. There government is run by a parliament and a prime

minister. The article also went into detail about the other political parties in that

area.

(2012). Asia: Population, culture and economy. The Columbia

Electronic Encyclopedia ed. 6. Retrieved from

http://www.infoplease.com/encyclopedia/world/asia-population-culture-

economy.html.

This article was written in 2012 by the Columbia Electronic Encyclopedia about the

population, culture, and economy in Asia. In this article they talked about the

people adapt to the changing weather and how it affects their culture and their

economy. The article mentioned how the Asian countries heavily rely on their

agricultural exports to have a successful economy. It also talked about the wide

range of religions how they differ depending on what part of Asia they are in.

(December 18, 2012). Australia’s economy. The Economist. Retrieved

from http://www.economist.com/blogs/graphicdetail/2012/12/focus-3.

This article focused on Australia’s and some of New Zealand’s economy. Their

economy has had consistent growth over the decades with low inflation and low

unemployment. It mentioned that mineral exports have really helped grow their

economy. The countries term of trade is actually above average compared to other

parts of the world.

(2006). Industrial development. United Nations. Retrieved from

http://www.un.org/esa/sustdev/publications/trends2006/indusdev.pdf

This article talked about the industrial development in the Asian countries. There

are parts of Asia that are fully developed and industrialized, while other parts are

still developing countries. The article talked about how developing countries in Asia

are successful in manufactured exports. In fact, Asia has experienced the fasted

rate of industrialization.

(2011). New Zealand: Culture, society, and religion. Expat Focus.

Retrieved from http://www.expatfocus.com/expatriate-new-zealand-

culture-society-religion.

This article talked about the culture, society and religion in New Zealand as well as

Australia. This article mainly talked about how their culture was influenced by the

native people of that country and then the European settlers that came. Most of the

native culture has faded away, however, they believe in a strong family values and

a since of community which was passed down by native values. New Zealand and

Australia are somewhat self sufficient countries and have a strong economy. The

main religion here is Christianity.

Textile and Apparel Sourcing: The Rise of South East Asia. (2012,

January 30). Retrieved from

http://chinasourcingblog.org/2012/01/textile-and-apparel-sourcing-t-

1.html.

This article was based on South East Asian countries that are on the rise in the

textile and apparel industry. Global textile and apparel sourcing is currently in a

state of change and the industry has become more diversified. Yet some individuals

may feel that this means this China is no longer one of the leading players in this

field, that is not true but emerging countries in South East Asia are increasingly

challenging China's dominance. This article explains how countries in South East

Asia are on the rise to maybe one day compete with an industry such as China’s.

Kunz, G., & Garner, M. (2011). Chapter 11: Asia and Oceania. In Going

global:

The textile and apparel industry (2nd ed.). New York: Fairchild Books. This chapter

discusses the magnitude of Asia as a political and economic trading bloc. It

discusses in detail select countries of the Asia/Oceania trading bloc economic

strengths and weaknesses related to the textile and apparel industries. It also

projects textile and apparel trading trends for Asian countries following the end of

the quota system.