DHM 4993 UPGRADE A+

DHM 4993 UPGRADE A+ Sourcing PD Stages - CORRECT ANSWER-Initial PD stage, line review, final PD stage Initial Stage of PD - CORRECT ANSWER-Share cost and quality performance of the goods sold in the past seasons and to optimize sales in next season. Line Review Stage - CORRECT ANSWER-Key personnel within the company get involved in line review, sourcing personnel focus on three criteria: functionality, producibility, and affordability. Final Stage of PD - CORRECT ANSWER-Check the proposed products against product classifications recognized by the source's country. By understanding product classification/interpretation, sourcing personnel can: provide best options for new PD, accurately estimate the duty amounts, and take advantage of various trade agreements with special duty rates. Functionality - CORRECT ANSWER-Whether a proposed garment actually serves as a wearable garment (ex: finding items, opening-closure, length) Producibility - CORRECT ANSWER-Whether a proposed garment can be properly manufactured. Affordability - CORRECT ANSWER-Whether a proposed garment can be produced within the budget and let everyone know if a potential increase/decrease in costs is expected. HTSUS Table - CORRECT ANSWER-Section 11- textile based goods, Chapter 61- kitten apparel, and Chapter 62- non-knitted apparel What is PEST Analysis - CORRECT ANSWER-Political, economic, social, and technological Political - CORRECT ANSWER-Trade policies/agreements, import/export, regulations, political, stability, etc Economic - CORRECT ANSWER-Currency exchange rates, unemployment rates, inflation rates, etc Social - CORRECT ANSWER-Work ethics, culture, the quality of the labor force, etc Technological - CORRECT ANSWER-Ease of communication, transportation, the degree of automation in the textile and apparel industry, etc Four Major IPR's - CORRECT ANSWER-Trademarks, copyrights, patents, and trade rules/secrets Trademarks - CORRECT ANSWER-(Names, symbols, words) The actual garment design is not protected Copyrights - CORRECT ANSWER-(Artistic and literary work) Apparel designs are intrinsically "useful" article Patents - CORRECT ANSWER-(Protect inventions) There is no "new" fashion Enforcement of IPR's - CORRECT ANSWER-Sources may have no power over the supplier;s acts of IPR violations, 62% of infringed goods are produced in China What country is most known to product intellectual right infringed products, according to the U.S. Customs and Border Protection? - CORRECT ANSWER-China Tariffs - CORRECT ANSWER-Duties (or taxes) imposed on goods being imported from foreign countries Quotas - CORRECT ANSWER-Limits on the quantity of a good that can be imported into a country in a given period of time Tariffs and Quotas - CORRECT ANSWER-Raise the overall product cost (price) and reduce the overall demand for products Tariffs control the quantity of foreign goods being imported. - CORRECT ANSWERTrue Types of Tariffs - CORRECT ANSWER-Ad valorem- assessed based on the percentage of the value of the products that are being imported (14.8% of $20, $2.96 + $20= $22.96), Specific- set based on a pre-determined $ amount per unit/weight ($3 per unit, $23), and Combination- assessed based on both as valorem and specific tariffs (14.8% of a $20 + 23.1 cents/kg, $22.96 + ($.231*.3)=$22.96+$.0693= $23.03 Types of Quotas - CORRECT ANSWER-Absolute- Country B could ship only a certain amount of quantity of Product C during a certain period of time and Tariff-Rate Quotas (TRQ) Country B could ship quantities beyond the quota quantity but with higher rates of duty MFA (Multi-Fiber Arrangement) - CORRECT ANSWER-The multilateral agreement regulating the rate at which textile and apparel could be traded, each country set import quotas specifying the imported goods and the associated quantities