Advantages of Sourcing Apparel From China, Taiwan, South Korea, and Mexico

This article examines the advantages of sourcing from China, Taiwan, South Korea, and Mexico for U.S. apparel imports. The factors which have contributed to apparel sourcing of U.S. apparel imports are discussed and include labor costs, tariffs, product quality, lead time, and exchange rates from the four countries between 1974 and 1994. Labor costs, tariffs, and exchange rates were found to be significant indicators in U.S. apparel sourcing, but product quality and lead time were not significant. These findings provide U.S. importers and retailers with important information to be taken into consideration when evaluating outsourcing options.