ABSTRACT

The production of fashion garments (not to be confused with design) is a fairly low-skill activity. Suppose shirts of a particular colour and cut are suddenly in vogue in New York. The department stores and suppliers will immediately transmit by some form of electronic mail the design and orders to their Asian suppliers. But the fashion, like many fashions, will last only for a few weeks or at most a few months. Manufacturing countries which can respond promptly are the ones which win such orders and rake in large profits. Other nations which are slow to respond (and, more importantly, have a reputation for slowness), either because they do not have the technology or because they do have the bureaucracy, will be the losers.