Becoming a Fashion Designer

It seems like everyone is jumping on the designer bandwagon these days. And why not? The fashion industry is sexy – fashion shows, parties, celebrities, recognition, and even fame go along with a career in fashion.

Now herein lies the question: do you go to design school or go straight to starting a business? Not all fashion designers go the traditional route to design school, instead drawing on an entrepreneurial spirit, some “designers” turn their head for business into a thriving fashion enterprise.

Ralph Lauren is an example of a fashion designer who bypassed the sewing machine and headed straight for the marketplace. Which path you take depends on your personal motivation. If you love sewing and pattern making, the traditional route is going to bring the most satisfaction. If you love the fashion world but don’t have the patience for needle and thread, a career in the fast-paced and exciting fashion biz is still possible … read on.

So you want to go out on your own, what’s first?

You’ve always admired fashion designers and their ability to design trendy, unique and wearable fashions season after season, as if by magic. But it’s not magic; it’s a business. And to succeed in business, nobody is an island (meaning that everyone needs a little help to accomplish his or her dreams). And it’s not all glitz and glamour. Being a fashion designer means you have to actually run a business.

Before you print up those business cards, ask yourself if you’re prepared to roll up your sleeves and tackle the not-so fun aspects of fashion.

At first, running a fashion business could mean fulfilling orders yourself (i.e., packing boxes until the wee hours of the morning), steaming clothes repeatedly during fashion shows, and bookkeeping. You could spend only a small percentage of your time actually designing; instead you’re networking, schmoozing and negotiating with suppliers and vendors.

If you’re planning to take the direct-to-consumer path, you’ll have to create a website and maintain it (and most likely have to pay someone to handle these tasks), get a merchant account to process credit card transactions and manage charge back cycles. If you’re not interested in learning what these things mean, then you may decide to work for a large fashion house to learn the ropes.

But if you have the endurance and enough friends with skills or services you can trade for, you could go out on your own and succeed. Today is the age of entrepreneurship, why shouldn’t you get a piece of the pie?

The fashion biz: a reality check

Exciting industries are rife with competition-some that will fade away and others that will give you a run for your money. You have to compete against the big names out there and trendy emerging designers fresh out of the best design schools or veterans of big fashion houses-not to mention all the celebrities popping up with their own labels.

Running your own fashion biz may require you to reach out to suppliers and potential customers all over the world, which means you better be organized. Are you prepared to coordinate the procurement of raw materials like fabric, trim and hardware, so that your manufacturer gets what they need at the right time to deliver a finished product on deadline?

Think of yourself as a business person first and a fashion designer second. If your fashion business fails, you’re the one that suffers. Always keep the business aspect in the forefront of your mind. Some people find this prospect exhilarating, while others can’t think of anything more horrifying. Still interested in starting your own fashion business?

I’m not a designer, can I still work in the fashion industry?

Yes … and no. If you have the design vision, you can pay people to take your idea and turn it into a tangible pattern or design. This is sort of like what a creative director does. If this fits your situation, then you’d better have the business chops to get your business off the ground and you’d better have a solid Core Value Proposition.

What this means is that you must have a strong business proposal and offer a product that’s valuable and in demand. That doesn’t mean you have to sell high-end couture clothing to rich people. Clothiers H&M and Zara focus on fast ready-to-wear fashion at affordable pricepoints.

There is more than one path to becoming a fashion designer. You can learn to sew and go to design school to learn the ins-and-outs of the business. But not everyone learns to draw patterns and stitch together garments. The keys to succeeding in the fashion business are creativity, a good business sense and determination.

Stay tuned for more advice on becoming a fashion designer.

A. Covington is a fashion writer with a sharp eye for men’s designer fashion. Her men’s fashion blog covers the essentials on how to dress well, from pocket squares and designer cufflinks, to work attire for men. Amy maintains three blogs for Belisi Fashions, a luxury accessories brand based in Palm Beach.

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Tafe Fashion Design Course and Merchandiser

The fashion industry has undergone a complete change in the recent times and the distance certifications for same are required for achieving success in fashion world. Fashion technology is becoming the fastest and entrenched industry in today’s world. All budding designers are working hard to develop new designs and brands which help companies sell their clothes, jewellery and footwear. The fashion Industry is widespread and requires creative ideas along with dedication for work for any designer to be famous.

Milan and Toronto are the famous Fashion Hotspots where the best designers and budding talents display their collections and perform shows. Today with various universities and institutes offering Fashion Designing courses which have facilities to teach the technical software’s of CAD and Patternmaker, are becoming increasing popular. Tafe fashion design course with the help of distance education help students reach them removing the barriers of countries. The courses available also offer specialization in Children / Menswear / Womenswear and even Bridal for designers to choose from. One such name in the education arena is TAFE.

TAFE

Tafe offers various courses which include the “Advanced Diploma of Fashion Design and Technology”. This course is specifically designed to train budding designers and help talented students develop their creativity through in specialized areas of Fashion Designing.

Course Details

Tafe fashion design course offers the Fashion Designing Diploma for students who are willing to apply practical, creative and technical knowledge in the field. Various aspects like design application and product development for management level students are also covered in the Course. Complete research is done by students while studying this course on topics from garment realization, fine patternmaking, fitting, interior, construction, merchandising and sizing which shall be used in the Fashion Industry.

Any successful and well equipped course for Fashion Designing shall include garment cutting and block construction which are the most essential aspects of garment design which are a part of the TAFE Diploma Course. The course consists of elective subjects like grading techniques, fashion development through patternmaking, fashion illustration, fabric manipulation, textile fibre, pattern draping, lingerie design, design elements, fabric sketching, swimwear design, sizing design, CAD and specialized software developed for computer fashion designing and selling concepts are available.

Merchandiser concept is also increasing today which is resulting in extensive design research for better quality and designs. Besides the basic cloth, jewelry is also being designed by various designers which is giving the industry a new look and arena to showcase. Students from Indian cities like Delhi and Mumbai which are hubs for fashion designing are aspiring to undergo the certification provided by TAFE. Delhi and Mumbai are two bog fashion centers in India. This course facilitates subject which shall help the student develop expertise in AQF5 level. Fashion production management and supply chain are vital components of the course curriculum which help in developing creative and critical thinking required for the fashion world and merchandiser concept. Applications.

The course is industry specific and is much more proactive than various similar courses offered by universities worldwide. This full time course can be undergone for a period of 3 years which provides Certificate IV LMT41007. This is the Applied Fashion Design and Technology Certification which is recognized all over the world and has greater industry acceptance for employment. Various Managerial level positions can be easily acquired after this certification in the Fashion Industry. The information on tafe fashion design course can be availed online from the websites. The Certificate subjects and details regarding fees and locations are displayed on the website. Before entering the Fashion industry one must get quality certification from renowned institute and TAFE is the first name that comes to one’s mind.

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Fashion Designer Jobs – Where Style Meets Substance

Fashion designing has always been a popular choice of young men and women all over the world. Stylish and well paid, these jobs would help you to gauge the pulse of the changing fashions in fashion capitals like New York and Paris. Fashion designing would teach you to consider clothes as a strong expression of one’s persona and style statement rather than just protection of the body. Fashion can make a person feel confident and strong as it has a bearing on the personality of the wearer.

There is a bevy of option son fashion designing including haute couture, wedding dresses, sports wear and fashion design among others. There are various reputed fashion institutes from where you can fine hone your aesthetic sense and innovation. A successful fashion designer should have an open mind and an eye for details. Customized fashion styling would help you to remain in the race.

Fashion designing has huge demand in the contemporary world where fashion is a potent weapon. As long as there are style- conscious, men and women on this planet the scope for this job would only go up. Fashion designers should creative hot and innovative designs that imbibe the current trends, select the right fabric and colors to infuse life into the designs. They would be required to work for long or irregular hours and hence they should be robust and active all round the clock Accessorizing is also part of fashion designing as a great dress alone would not complete the style statement.

Fashion Design involves various branches like Garment design, Leather design, and Accessory & Jewelry design. Fashion designing a great bet to mingle with the rich and the famous and some of the most famous figurines of the movie and fashion world, which in itself is an attraction for many youngsters to pursue a career in fashion technology.

Fashion designers are in great demand. Apart from fashion boutiques and ready made shops, fashion designers can also set up their own business with the minimum set up cost or do freelancing for well known fashion houses and designer labels. Freshers can think of Apprenticeship under a well-known designer to showcase your talent. The fame and glitter of the fashion world is the added attraction of these career options. The sense of accomplishment when your creation is admired by some of the most famous men and women in the world cannot be expressed in words.

Those who are interested in pursuing a job in fashion designing should be creative and expressive to give shape and form to their themes and fanciful ideas. Excellent communication skills and interpersonal skills are essential for fashion designers to interact with the high profile clients. To further have detailed information about each aspect of career as a fashion designer, visit careers.stateuniversity.com

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Train For a Career in Fashion Design

Do you notice what everyone is wearing? Do you stay on top of the latest trends in clothing and accessories? Do you have a passion for fashion?

If so, then you should consider a career in fashion design. From the design table to the showroom floor, there are many steps involved in bringing fashionable clothing to the marketplace. Many highly skilled people are involved-designers, pattern makers, cutters, stitchers, photographers, fabric experts, wholesalers, and fashion models. With the right training, you could be one of them.

Fashion designers often work for big companies, helping to make both haute couture (high-priced custom-made clothing) and the off-the-rack clothing that is sold in department stores and boutiques. Fashion designers can also work for themselves, and many own their own independent fashion companies. Specialized designers create footwear and accessories such as purses and hats. From the neighborhood tailor to the international artist who designs “red carpet” dresses for movie stars, the world of fashion is diverse and multi-faceted.

The fashion industry is becoming increasingly global. A ready-to-wear apparel company may have designers in one country, the manufacturing facility in another, and retail outlets all over the world. Successful fashion designers enjoy travel, are interested in all aspects of creating clothing, work well with a variety of people, have a keen eye for trends, and know how to design clothing that people want to buy. Pricing is important, too, because mass market designers need to create clothing that can be manufactured and sold at the lowest possible cost.

Computer skills are increasingly important. Many designers sketch initial ideas with paper and pencil, and then translate these hand sketches to the computer. Computer-aided design (CAD) is increasingly being used in the fashion design industry. CAD allows designers to create clothing designs on virtual models and in a variety of colors and shapes. These CAD templates can then be used to direct the manufacturing process, which is often located thousands of miles away.

What’s the job outlook? Opportunities are out there if you have the right training! According to the U.S. Bureau of Labor Statistics, during the current decade from 2008 to 2018 “the best job opportunities will be in design firms that design mass market clothing sold in department stores and retail chain stores, such as apparel wholesale firms.” But having the right training is key! Most fashion designers have an associate (two-year) or bachelor’s (four-year) degree in fashion design. Program areas may include design, business, marketing, merchandising, and even human anatomy and computers.

Is the fashion industry competitive? Yes, it is! Many people are lured by the promise of a glamorous lifestyle, but a career in fashion design means plenty of hard work and long hours. This is why quality career education can make a big difference to a person’s success in the competitive fashion marketplace.

How can you get started? Find an accredited school or degree program. The National Association of Schools of Art and Design accredits nearly 300 postsecondary institutions with degree programs in fashion design. The best way to start is to log onto a reputable college directory website. You can enter the search terms that are appropriate for you, such as “fashion design college in New York” or “online fashion degrees.” You’ll be presented with the colleges that meet your criteria. Compare programs and financial aid and career services. You can request free information from the schools that interest you. It’s that easy! Then you can narrow down your choices and make your applications…and in less time than you think you could be training for a rewarding career in fashion design.

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5 Career Options for Fashion Design Degree Holders

Society and parents in general tend to be wary towards encouraging people to work in Fashion for good reason. Firstly, they are right about the industry’s highly selective employment. They’re also right when they say that Fashion is “not what it seems” even though they probably have no idea what they really talking about. But before you decide to throw in the towel and take up accounting courses, or look for a no-brainer 9-5 job, here are a few fashion design careers to consider!

The Popular Path

A fashion designer’s job seems to be surrounded by the glitz and glamour of having your works appearing on glossy magazines and the season’s hottest celebrities. It’s a no-brainer that people want to be fashion designers just like how some covet to be millionaires. To take this career path, you need a strong design portfolio. Prior work experience in fashion will be an advantage. So this is where being an intern during your holidays pay off.

There are two kinds of Fashion Designers:

The In-house Designer:

You will work with a fashion company and design clothes according to their guidelines. The company will own the rights to your designs while you draw a monthly salary from them. Depending on the scale of the company, you may work alone or with a team. Be an in-house designer if you have plans to join the big wigs like Fendi, Gucci, Prada or Louis Vuitton.

The Freelancer:

Freelancers work for themselves and sell their designs to fashion houses, directly to shops or to manufacturers. After building a good name, you’ll probably start getting people commissioning you for design work. Freelance Designers have the flexibility of work hours and tend to command higher wages, but keep in mind that financial stability is at high risk. If you’re just starting out, it’s best to work as an in-house designer for some experience first before attempting a freelance career.

Other Possible Paths

Most people don’t study fashion design specifically to join these ranks, but if you found that designing isn’t your cup of tea somewhere through your course; these are jobs in the industry that you can consider:

Fashion Buyer:

You will be responsible for travelling around and buying suitable fashions for shops or departmental stores. Your knowledge in Fashion Design will help you to predict trends or identify quality, giving you an edge for this job.

Fashion Journalist:

You will write articles about fashion and source for newsworthy stories in your field. With in-depth fashion know-how and garment composition, you’ll make a perfect critic and can dish out fantastic fashion advice.

Wedding photography:

You will plan locations and carry out photoshoots with newly weds or bridal studios. By knowing the ins and outs of a fashion shoot, you can make a couple look awesome in their matrimony garb.

Verdict

If you find yourself jobless long after you’ve graduated with your fashion design degree, all is not lost. It just means that your portfolio needs a revamp. Read up fashion magazines for inspiration and start sketching for a variety of genres. Employers judge designers by their portfolio because it’s the most accurate representation of the owner that no résumé, job experience or testimonial can replace. It portrays your education, experience and personal style. With the right attitude, the possibilities are endless! If the world is not providing you with any shortcuts, the best solution is to make one yourself.

Donald, International Admissions Director of Raffles Education Corporation, a leading education provider in Asia Pacific operating 33 fashion design colleges across 30 cities in 13 countries (Malaysia, Singapore, Thailand, New Zealand, Australia, Bangladesh, India, China, Hong Kong, Cambodia, Sri Lanka & Indonesia). Certifications such as Advanced Diploma, Bachelor and Master Degrees are also offered for various design disciplines such as visual communication, animation, multimedia, interior design, product design, jewellery design, biomedical, infocomm security and early childhood.

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The Unintended Consequences of Globalism

Globalism might be good for the world economy as a whole, but does not necessarily mean it has been good for the American worker. Whether intentional or unintended, the American worker has suffered through the philosophy of free trade. Do not miss quote me, Globalism has a lot of positives. Now more than ever the people of earth are connected through the internet and can communicate information faster than any other time in history. People are exposed to different cultures and ideas, and the free flow of information is exponentially evolving our society. “Free trade” plays a big part in globalism, which is why there has been a “backlash” from non-college educated workers in wealthy countries in direct response to the effects of free trade policies. When wealthy counties openly trade with developing countries it can overvalue the wealthy countries currency, which in turn makes imports cheaper while exports become more expensive. However, according to the Economic Policy Institute, the real culprit is not the valuation of the dollar and the increasing trade deficit. (Bivens, Economic Policy Institute)

The USA has increasingly shifted its economy from manufacturing to services like banking and investing. It is cheaper to import products of manufacturing from a country that has extremely cheap labor than it is to employ American workers in the United States. This in turn means there now is a premium on college educated Americans who are filling job openings within the service industry. On the other side of the coin, manufacturing jobs are leaving the country and lowering wages of workers without a college degree. This fact coupled with increasing technology that replaces workers and a trade policy that out prices “expensive” American workers is leading to decreased wages. As the US trades more with developing countries as a percentage of GDP, the wages of unskilled workers continue to decrease. (Slaughter and Swagle, International Monetary Fund)

Though Globalism has a net increase in GDP and employment for countries involved, most of the gains from free trade is disproportionately received by the top 1% of Americans. Policies that protect corporations and their interest at the expense of the American worker exacerbate the problem. Trade policies like NAFTA and others have little protections for workers and heavily favor the multinational corporations that seek to benefit from free trade. This only adds fuel to income inequality, which for poor countries can increase economic growth while having a negative effect on rich countries. Rich countries are also at higher risk of financial crisis when they have high levels of income inequality. (Malinen, Huffington Post)

Globalism and free trade are linked very close together, which is why there is a stigma attributed to the word. There has been growing resentment within the US and other wealthy nations of globalism as a whole. They do not just condemn free trade, but openly blame minorities and marginalized groups for their decrease in wages and “eroding” their cultural dominance that they claim dominion over. This is a deadly cycle, as income inequality only feeds this type of behavior. In a country that is not adequately educating its people, more of the workers within its country will become more ignorant. With free trade putting a premium on college educated workers and decreasing wages of unskilled labor, we are now almost at a tipping point, socially and economically.

Globalism has many unintended consequences that inadvertently caused huge social and economic problems within the US. The problems that globalism is causing is not a hard fix. Reducing the income inequality will eradicate more of the negative effects of globalism. Universal Education, Universal healthcare, and a rewrite of our tax code are just a few ways to reduce income inequality. All of these possibilities are well within our means. We have to take care of these problems swiftly, before globalism becomes an integral part of our own decline. (Mason, Post-Gazette)

Bivens, Josh. “Using Standard Models to Benchmark the Costs of Globalization for American Workers without a College Degree.” Economic Policy Institute. N.p., 22 Mar. 2016. Web. 25 Apr. 2017.

Malinen, Tuomas. “The Economic Consequences of Income Inequality.” The Huffington Post. TheHuffingtonPost.com, 17 Dec. 2015. Web. 25 Apr. 2017.

Mason, Bob. “Single-payer Health Care Would Help to Treat Three Separate Threats.” Pittsburgh Post-Gazette. N.p., 26 Oct. 2014. Web. 25 Apr. 2017.

Slaughter, Matthew, and Phillip Swagel. “Economic Issues 11–Does Globalization Lower Wages and Export Jobs?” International Monetary Fund. Imf.org, Sept. 1997. Web. 25 Apr. 2017.

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Global Trends in the Cosmetic Industry

Cosmetic dyes and colours: Explained

Cosmetic colours are also known as cosmetic lakes. These colours are produced by taking the help of absorption of dyes that are water-soluble onto a substrate. It makes the colour insoluble in water. Cosmetic lake colours are made by making use of unique technology. The technology helps in attaining extremely fine particles. These particles help in achieving shade consistency. In comparison water soluble colours, cosmetic lakes are much more stable & safe. They also generate vivacious and brighter colours. It has been seen that cosmetic pigments and lakes are more suitable for food products that contain fats and oils. They are also suitable for those products that do not contain enough moisture for dissolving colours.

Cosmetic dyes, on the other hand are used for making cosmetic colours & products. These dyes are widely used by the cosmetic manufacturing industries and businesses all over the world. They are primarily used for manufacturing hair dyes, lipsticks, nail polishes, shampoo as well as other personal care products. It has been seen that generally water soluble & food dyes are very easy and safe to use. These dyes are mostly used for a wide variety of applications. They include cleaning chemicals, soaps, medicine, cosmetic products etc.

Know which ones are safe for use

Be it the use of any type of cosmetic dyes or cosmetic colorants safety of use is a primary consideration. Cosmetic colours and cosmetic dyes often make use of a wide range of synthetic colours. These are often referred to as FD&C colours. They are mainly extracted through coal tar and are basically a by-product of petroleum. Research shows that some particular coal tar based dyes lead to different types of cancer. This is why the FDA regulates them. They also determine the arsenic or lead amount they contain. Thus there are many restrictions in the use of such colours.

Some global trends in Cosmetic dyes and cosmetic colours

Worldwide it is seen that North America, followed by Europe, has the largest market for colour cosmetics. This is due to innovations in colour cosmetics. Other factors also include high consumer disposable income and frequent new product launches in colour cosmetic market in the region. However Asia too is expected to show high growth rate in the colour cosmetics market in next few years. This is on account of the increasing consumer incomes and rising in awareness about personal care products in the region.

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Economic Turmoil and the Future of Brazil

For many years, Brazil has been an emerging economic hub, attracting investors from all over the world. The Brazilian economy saw an 368% increase in Gross Domestic Product growth from 2003 to 2011. In addition, Brazil took in almost half of Foreign Direct Investment flowing into South America during 2015. This doesn’t come as a surprise since it reigns as one of the major emerging national economies. However, Brazil has seen a recent economic downturn with increasing unemployment and a contracting GDP. In fact, the Brazilian government cut 2017 GDP expectations from 1.6% to 1% growth. Having been one the most lucrative foreign investments for governments to individual investors, what happened to the so-called “Country of the Future” and can Brazil regain its momentum?

Back in 2015, recession hit Brazil hard and the country is still struggling to get back on track. According to the CIA World Factbook, the economy contracted 32% from its peak in 2011 and unemployment reached a new high at 12.6% in 2016. Being based mostly on services, agriculture and oil, Brazil’s economy has a direct correlation with global demand. With global recession looming, Brazil is feeling the effects of a slow world economy.

Brazil is a top tourist destination offering beautiful beaches, a diverse culture and exciting festivals. However, with the world economy slowing down, people are less likely to travel abroad. Since the majority of the country’s GDP derives from the service industry, Brazil will not be able to rebound any time soon unless there is a major boost in consumer confidence.

The demand for Brazilian exports was slashed when its largest trading partner, China, entered into an economic slowdown of their own. The decrease in exports caused massive layoffs throughout the nation. The notorious economic downward spiral began by wary consumer spending as unemployment rose. Companies that tried to gain capital by borrowing in U.S. dollars found it difficult to pay back those loans as the Brazilian Real crashed 25% in the span of a year in 2015.

One of the major hits came from low oil prices and the corruption of Petrobras, a large oil company and Brazil’s largest source of investment. Brazil is major producer of oil, exporting $11.8 billion worth in 2015, according to the Observatory for Economic Complexity. OPEC delivered a major blow when the cartel decided not to cut oil production, causing oil futures prices to plunge. In order to cope with heavy losses, Petrobras was forced to sell off assets and halt future research and expansion plans.

As if things weren’t going poorly, Petrobras was also caught in a scandal with former Brazilian president Dilma Rousseff and other high office executives. From 2004 to 2012, the company had spent over $2 billion on bribes to politicians whom would allow the company to charge inflated prices for construction contracts. Now that the scandal has unfolded, Petrobras executives face jail time and the company as a whole is forced to pay billions in fines.

So what does the future hold for Brazil?

Although at the moment the future looks dim, there are still signs of hope Brazil can turn itself around. The Real has seemed to stabilize in 2016 and heads into 2017 with an upward trend. Moreover, experts’ GDP projections for 2018 through 2020 show promising figures that Brazil can restore pre-recession level growth.

Even more promising, U.S. companies are still showing faith in Brazil’s future. American Airlines plans to invest $100 million in an aircraft maintenance center in Sao Paulo. Brazilian Investment Partnership Minister Wellington Moreira Franco and many countries like the United States, United Kingdom, France and Japan agree there are still reasons to invest in Brazil. This should be seen as a sign of confidence that the Brazilian market will grow soundly with the support of both national and international investment.

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The Effects Of The Global Trade Agreement

We live in a world that is increasingly getting connected. In such a world, trade agreements are bound to expand internationally, and to think and act otherwise would be downright stupid.

These global trade agreements, as such, are either bilateral or multilateral understanding between two or multiple countries and govern the trade policies between them. These agreements have a massive impact on worldwide trade and investments and are one of the major causes responsible for shaping business relationships across the globe. And while such agreements might not affect directly affect the place where you live or operate, being aware of the current trade agreements can definitely uncover numerous opportunities.

Forming up opinions is up to you; we do not intend to initiate an argument over how good or how bad these global trade agreements are. This article aims to get you familiarized with such agreements and tell if your supply chain could be affected or not.

While a few countries have settled upon free trade agreements and are in the process of widening them, a number of other nations have formed common markets and unions; this form of development can a have a thorough effect on small-scale businesses.

Two of the most common agreements are the Trans-Pacific Partnership (TPP) between Australia, New Zealand, Singapore, Canada, Brunei, Peru, Mexico, Chile, Malaysia and Japan, and the North American Free Trade Agreement (NAFTA) between Canada, United States and Mexico.

Now, how such agreements impact your local business’s supply chain depends on a simple fact; whether your business is an importer, exporter or neither.

Scenario 1: You neither import nor export

It’s fairly easy to decide whether you are an importer or not, right? I understand that you do not directly source products from a foreign supplier, and technically speaking, that doesn’t make you an importer. However, trade agreements can still impact you. Your suppliers are directly affected by such regulations, and this vulnerability can affect your supply chain.

Keep the distinction in mind.

Scenario 2: You identify yourself as an importer

Owing to the low cost manufacturing in some countries, many small scale suppliers are able to compete with global giants.

With a trade agreement between two countries, most of the times, the country with lower labour costs benefits when the trade tariffs are lowered or eliminated. With trade agreements, importers usually get to source low-cost goods and it allows for the unrestricted movement of such low-cost goods through higher cost partner nation.

In case, such an agreement is dissolved, an importer would inevitably face a higher cost of goods and thus look for cheaper sourcing options, decrease their operational costs, and ultimately increase the prices, which would be borne by the customers, of course.

Scenario 3: You are an exporter

This even counts if you sell products that another firm exports because at some point or other, taxes would be levied on your sold goods. So how does it affect you? Your customers end up paying higher amounts for your products.

With a trade agreement in place between the country where the product originates and the receiving country, the very same products would move through the receiving nation freely. In such cases, you’d definitely want to keep such an agreement intact and leverage this competitive advantage you have in this particular country bound by trade regulations.

As a small or a medium sized business, it is therefore important for you to identify where your business lies with respect to global trade agreements.

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The Paramounted Importance of Critical Analysis in International Trade Policies

International trade is largely based on the constant fluctuations in the world-wide economy, this resulting in constant changes with regards to tariffs, trade subsidies and unending amendments of regulations with regards to international trade. “Trade policy and economic Growth”, a paper by Keith Maskus, PhD, focuses on the relationship between trade policies and the growth of the economy or lack thereof, the main point of interest of the paper was to establish whether the variance of trade policies will affect the economic growth of any country. The conclusion reached was that open economies tend to grow faster than closed economies, ceteris paribus. therefore concluding that open competition is good in the sense that it improves resource distribution and the country gains in Investment and innovation.

An organisation that is involved in international trade has to pay special attention to such information. There might not be any countries with closed economies however there are countries that have low imports to the point that they are regarded as closed economies for instance Brazil. In 2011 Brazil recorded 13% as its import percentage which was quite low for a country of its stature. Is it not then imperative to constantly be up to date with changes in the trade policies of countries one is interested in pursuing trade relations with? since there is a proven positive relationship between the openness of an economy to competition (thus meaning the country is greatly involved in trade) and the growth of that country`s economy, this serves as an indication of how lucrative and profitable a business venture would be under such circumstances. The Critical analysis aspect then comes into play by determining how much gain or loss would result from substantial changes to the policies, which are measures and instruments that can influence export and imports, the objective being the policies influence the trade sector to the result of profit for the business venture. one might feel a degree in commercial management is then needed in order to fully understand all the kinks and edges of the international business, and they would be right, but the eventuality is that it will always boil down to intelligence and efficiency in the analysis of trends, calculation of potential profit/loss, predictions of future stability or fluctuations in the world economy prompting changes to prices in the trade sector.

There is one other important factor that can alter potential business plans, and that is the politics of the country in question, policies are easily influenced by the politics of the nation, and it is thus advisable that critical analysis be also engaged, this results in better understanding of the country and its stability thus reducing the chances of incurring a bad business eventuality. Nations are not governed by robots, unfortunately, but are governed by people with interests and human nature desires to differ from individual to individual making it difficult to maintain a constant effective system. if politicians are elected they tend to focus on altering policies for their own benefit, and the benefit of those they promised (if there are still honest politician available) from that point it is important that international business consider such factors before pursuing business. Prime examples being, whenever there are strikes in South Africa investors tend to shy away, and most of the strikes are birthed from political influence, thus deeming South Africa an Unstable nation to invest in, or Zimbabwe a nation sanctioned, due to political infringements, making the country undesirable for investment irregardless of the profitability of the business idea. It is thus an excellent idea to firstly research in-depth to the politics of the country before hand and invest with,much-needed information, guiding the innovative decision made.

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