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249 Cards in this Set
- Front
- Back
adversarial relationships
|
behavior between customers and suppliers in textile complex
-success of one depends on costs to another |
|
Acquisition
|
act of making garments available for personal use; increases inventory
|
|
As Valorem tariff
|
a tax set as a fixed % of value of an imported product
|
|
African Growth and Opportunity Act
|
(AGOA)
Assists sub-Sharan Africa achieve economic self-reliance |
|
Agreement on Textiles and Clothing
|
(ATC)
trade agreement that replaced Multifiber Arrangement (MFA) |
|
American Apparel and Footwear Association
|
(AAFA)
predominant US apparel related trade association in the Americas |
|
ANDEAN
|
Trade among Bolivia, Colombia, Ecuador, Peru
|
|
ANDEAN Trade Preference Act
|
(ATPA)
trade agreement with US and Northern S.A. |
|
ANDEAN Trade Promotion & Drug Eradication Act
|
(ATPDEA)region became eligible for duty-free on exports of US goods in 2002
|
|
Apparel knitting mills
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manufacturing facilty that inter-loops yarns to make garments without producing fabric first
|
|
apparel manufacturer
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engage in merchandising (design and product development)production, wholesale marketing
|
|
Apparent consumption
|
estimation of domestic consumption
(domestic production + imports - exports) |
|
Asia-Pacific Economic Cooperation
|
(APEC)
-est. in 1989 as forum for 21 member nations to invest in Pacific Rim |
|
Association of Southeast Asian nations
|
(ASEAN)
ehances trade options for 10 member countries |
|
Basic Goods
|
standardized, utilitarian, and have infrequent demand for changes in styling
|
|
Big Mac Index
|
compares buying power of currencies to Big Mac produced in 120 countries
|
|
Buying Power
|
amount of goods that can be purchased with a given amount of money at a given place in time
|
|
CAFTA-DR
|
Dominican Republic and Central American Free Trade Agreement
|
|
Capitalism
|
economic system based on freedoms of ownership, production, exchange, acquisition, work, movement, and open competition
|
|
Caribbean Basic Economic Recovery Act
|
(CBERA)
|
|
Caribbean Basin Initiative
|
(CBI)
trade preference program by US in 1983 eliminating quota restraints and expanding Item 807 |
|
Cost, Insurance, Freight
|
(CIF)
Value of product when it arrives at importing country |
|
Cut, Make, Trim
|
(CMT)
apparel contractors who also provide apparel assembly as primary service |
|
Code of Conduct
|
statement of principles and standards by which business decisions are made
|
|
Communism
|
economic system where resources are cooperatively or state-owned; classless society where equal distribution of economic goods is the economic goal
|
|
Complement
|
a product purchased and used along with anouther
(ex: shoes and socks) |
|
Conglomerate
|
a business formed when firms in unrelated markets join together for common ownership
|
|
Consumer Obsolescence
|
discards products due to lack of interest in them rather than the lack of their usability
|
|
Consumer Price Index
|
(CPI)
a measure of the impact of inflation on consumer buying power in the US |
|
Consumption expenditure
|
money used to support the level of consumption during a specified period
|
|
Consumption
|
use of commodities , their uses, and services consumed
|
|
Contractor
|
a firm that manufacters products for other businesses or arranges for their production
|
|
Contonou Agreement
|
SSA, Caribbean and Pacific (Asian) countries recieve trade benefits from the EU
|
|
Counterfeit
|
imitation of what is genuine intending to defraud the customer
|
|
Counterfeiting
|
the act of making an imitation of an original with the intent to defraud
|
|
Countervailing duty
|
a special tax that increases the price of goods to a competitive level
|
|
Country of origin
|
laws and regulations to determine the country of origin of goods
|
|
Current Dollars
|
buying power at specified time, numbers not adjusted to account for inflation
|
|
Customs and Border Protection
|
(CBP)
U.S. Customs service |
|
Customs Service
|
govt. agency responsible for monitoring imported goods, assessing and collecting duties, and reporting imports against quotas
|
|
Cut-and -sew apparel manufacturing
|
apparel production plant that performs both prepproduction and production processes
|
|
Democracy
|
political system where the people hold the ruling power either directly or through elected representatives
|
|
Department Store
|
retailers that provide a variety of product lines usually at moderate to higher-priced levels
|
|
Developed Country
|
a nation whose GDP per capita and other measures of well-being fall below world average
|
|
Developing Country
|
a nation whose GDP per capita and other measures of well-being fall near or below the world average
|
|
Dictatorship
|
a political and economic system operated by a ruler with absolute power or authority
|
|
Discard
|
the act of giving up possession and ownership of a garment; reduces inventory
|
|
Discretionary income
|
amount of money available after all current obligations are covered
|
|
Disposable Income
|
take-home pay; amount available to an individual or family
|
|
Distressed Goods
|
merchandise that is not sellable at the intended price;seconds;overruns;samples;last season's goods
|
|
Domestic Production
|
products made in the home country
|
|
Domestic Trade
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exchange of goods, services, or both within the boundaries of a specified state or country
|
|
Dominican Republic and Central American Free Trade Agreement
|
(CAFTA-DR)negotiated in 2002 ; intended to solidify the US as leading supplier of goods and services to C.A., D.R., and provide duty free to US Market
|
|
Dumping
|
selling a product in another country at less than the price it is sold in the home country or less than it costs to product
|
|
Duty
|
a payment due to import or export goods; usually based on a tariff scheduale
|
|
Dyeing
|
the process of combining fibers, yarns, or fabrics with a coloring substance and creating a bond
|
|
Economic luxury
|
superior good
|
|
Economic necessity
|
normal good
|
|
Economic system
|
method of managing resources; producing, distributing, and consuming wealth
|
|
Effective tariff
|
economic impact of nomial tariff
|
|
Embargo
|
prohibition of the entry of goods into a defined political area; stoppage of trade until issues can be negotiated
|
|
Ethics
|
a system or code of morals of a particular person, group, or profession and its application to decisions and/or particular problems of conduct
|
|
Euro
|
common currency intiated by EU-15 in 2001
|
|
European Community
|
(EC)
EEC membership formed in 1967; France blocked membership of UK until 1973 |
|
European Economic Area
|
(EEA)
cooperative arrangement to strenghten trade and economic relations to create homogeneous european trade area with the support of the EU |
|
European Economic Community
|
(EEC)
formation of Common Market: Belgium, Luxembourg, Netherlands, France, West Germany in 1957 |
|
European Union
|
formed in 1993 to expand cooperation regarding trade, social issues, foreign policy, security, defense, and judicial issues
|
|
European Union (EU-12)
|
Original 12 members: Beligum, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, UK
|
|
European Union-15
|
(EU-15)
Austria, Finland, Sweden admitted in 1995 |
|
European Union-25
|
(EU-25)
Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia admitted in 2004 |
|
Exchange Rate
|
market value exchange rate
|
|
Extra EU
|
refers to trade between EU countries and countries that are not members of the EU
|
|
Export Subsidy
|
payment from a govt. to a firm as a reward for exporting products
|
|
export trading and sourcing company
|
provides services for the entire global apparel manufacturing and distribution process
|
|
Exports
|
goods shipped to another country for import in exchange for money, other goods, or jobs
|
|
Fabric Finishing
|
processes that converts greige goods into completed fabric
|
|
Fabric forward rule
|
trade rule that limits tariffs and/or provides quota-free imports to garments made of fabrics produced in the sourcing country
|
|
fair trade
|
trade systems and regulations that are less discriminatory among suppliers
|
|
Fair trade associations
|
most socially responsible groups in the global market with concerns for human rights, business relationships, and environment
|
|
Fashion
|
a style of dress accepted by the majority of a group at a given time
|
|
Fiberweb fabrics
|
made directly from fibers; traditionally called nonwovens
|
|
Findings
|
materials other than face fabric used to construct garments; closures, linings, etc.
|
|
Firm
|
any business, corporation, proprietorship, or partnership
|
|
Flexible production systems
|
quickly and efficiently produce a variety of styles at low volume pers tyel with 0 defects; use single ply cutters and modular systems with stand up sewing
|
|
Floor ready
|
garment producers attach retailer specified tickets and labels on garments ready for display before shipping out
|
|
Free On Board
|
(FOB)
value of product when it's loaded onto the carrier |
|
Free Trade
|
unrestricted exchange of goods among nations
|
|
Free Trade Area of the Americas
|
(FTAA)
most comprehensive free-trade agreement 2000s involving 34 countries |
|
Free Trade Zone
|
port or other site within a nation designated for duty-free entry of selected goods to be displayed, stored, or used for manufacturing
|
|
Full-Package
|
apparel contractor that provides production services and product development and materials sourcing
|
|
Full-Package sourcing
|
finding a production contractor that will finance most of the manufacturing process
|
|
General Agreement on Tariffs and Trade
|
(GATT)
multilateral Trade agreement to promot free trade of goods and equalize trade among countreis- absorbed by WTO |
|
Global Marketing
|
activities that accelerate movement of goods and services from manufacturer to consumers in many countries around the world
|
|
Global Sourcing
|
determining desirable vendors of services, materials, production, and finished goods anywhere in the world
|
|
Global Trade
|
includes the potential interactive participation of many groups, cultures, and nations in the merchandising, production, and distribution of products
|
|
Globalization
|
process where world's people are becoming increasingly interconnected in all facets of their lives
|
|
Government Subsidy
|
payment from a government to a business to defray business costs
|
|
Grey market goods
|
original goods that are sold by unauthorized vendors
(not knockoffs) |
|
Gross Domestic Product
|
(GDP)
market value of the output of products and service produced within a country in a year |
|
Gross domestic product per capita
|
GDP of a country divided by the # of people in the population
|
|
Gross National Product
|
(GNP)
value of the average output produced by domestic residents of the nation as they labor within the nation |
|
Harmonized System
|
(HS)
Harmonized Commodity Code; global classification system used to describe trade in most goods; international at 6 digit level; country by country at 10 digit level |
|
Harmonized Tariff Schedule of the United States
|
(HTS)
asses duties on imports and exports based on the metric system; replaced TSUS in 1989 |
|
Horizontal integration
|
merger with a competitor, a firm offering products or services for the same market
|
|
Human Development Index
|
(HDI)
indicator of well-being, incorporating measures of GDP, life expectancy at birth,and adult literacy |
|
Human Trafficking
|
facilitating the emigration of people for monetary gain
|
|
Intra EU
|
refers to trade among countries that are members of the EU
|
|
Illegal Transshipment
|
shipping goods from one country to another to illegally change the country of origin of the goods to avoid tariffs or quota limitations
|
|
Import Penetration
|
amoumt of domestic consumption provided by imports (imports /consumption)
|
|
Import Surge
|
unexpected or unplanned flood of imports of particular categories
|
|
Imports
|
goods or materials available for domestic production because of exports of other countries
|
|
Income elasticity of demand
|
determined by relative changes in income and expenditures; % change in expenditure/ % change in income
|
|
Industrial Espionage
|
made it possible for US spinners and weavers to use machines copied from English inventions
|
|
Inferior Good
|
product consumed out of necessity but not goods preferred according to the standard of consumption; amount spent decreases when income increases and increases when income decreases
|
|
Inflation
|
increase of general price level causing decline in purchasing power
|
|
Intellectual property
|
copyrights, trademarks, patents, trade secrets, and semiconductor chips; inventions, or other discoveries that have been registered with govt. authorities for the sale and use by their owner
|
|
Intellectual Property Rights
|
legal protection for exclusive use by owners of copyright , trademarks, patents, trade secrets, and semi-conductor chips
|
|
International Labor Organization
|
(ILO)
UN agency that promotes social justice and internationally recognized labor rights |
|
International marketing
|
promoting, pricing, and selling goods in selected foreign markets
|
|
International Monetary Fund
|
(IMF)
works with world bank to integrate countries into the global economy |
|
International Sourcing
|
determining desirable vendors of services, materials, production, and/or finished goods for import from one or a few countries
|
|
International Trade
|
any exchange of goods involving 2 or more countries
|
|
International trade *
|
exchange of goods between nations and all the issues associated with that exchange
|
|
International trade regulation
|
barriers and limits on types and quanitities of goods and services that cross political boundaries
|
|
Inventory
|
the entire stock of garments owned by the individual or group that could be used as clothing at a given time
|
|
Item 807
|
(9802)
allowed garments cut in the US to be exported and assembled and then imported with tariff based only on value added |
|
Kint Outerwear
|
sweaters, jackets and coats
|
|
Knockoff
|
imitation of an original that is made with lower-cost fabric and production methods and sold at a lower price
|
|
Labor exploitation
|
taking advantage of employees because of poverty, gender, or age
|
|
Labor Union
|
bargains with employers on behalf of workers about terms and conditions of employment; lobbies for the interests of workers
|
|
Layette
|
apparel that is specially designed and produced for children from birth until they begin walking
|
|
Lean retailing
|
effective management of inventory based on accurate and timely information and frequent resupply
|
|
Least developed country
|
a nation whose GDP per capita is among the lowest in the world; not yet involved in industrial development via apparel
|
|
Level of consumption or living
|
that which is actually experienced, enjoyed, or suffered by an individual or group
|
|
Licensee
|
the buyer of the right to use the merchandising property
|
|
Licenser
|
the owner of a merchandising property
|
|
Licensing contract
|
a means of transferring intellecutal property rights
|
|
Living
|
consumption and other dimensions of life
|
|
Lobbying
|
process of influencing the formation of legislation of rules, regulations, and policies
|
|
Lobbyist
|
professionals that carry the messages defined by their employers and try to influence the formation or administration of legislation
|
|
Logistics
|
science of moving products through the manufacturing and distribution pipline to their final destinations in a timely manner
|
|
Maastricht Treaty
|
12 EC members signed to form EU in 1991
|
|
Manufactured fibers
|
(man-made fibers)made form chemical compounds; nylon, spandex,
|
|
Manufacturer's Identification Number (RN)
|
number assigned by the US federal trade commission to identify a product's producer
|
|
Market Value Exchange Rate
|
value of one currency in terms of another currency at a particular point in time
|
|
Market Week
|
calander time set aside for trade shows feat. manuf. product lines at wholesale to retail buyers
|
|
Mass customization
|
integration of information technology, automation, and team based flexible manuf. to produce a variety of products and services based on individual customer demand
|
|
Mass retailer
|
firm that offers a wide variety of consumer goods in a self-service environment with broad appeal
|
|
Merchandising properties
|
primary means of product differentiation and a source of customer loyalty
|
|
MERCOSUR
|
Southern South American Common Market
|
|
Merger
|
combining 2 business entities into one larger business
|
|
Minimum needs
|
essentials of life defined by levels and standards of consumption and living; varying according to place and time
|
|
Morals
|
degree of conformity with generally accepted or perscribed standards of goodness or rightness in character or conduct
|
|
Most-favored nation
|
(MFN)
all nations engaged in the same trade agreement should be treated the same |
|
Multifiber Arrangement
|
(MFA)
allows quantity of textile and apparel trade to be regulated through bilateral agreements between nations |
|
Multilateral trade agreement
|
invovles more than 2 countries
|
|
Natural Fibers
|
cotton, wool, silk, linen. Vegetable and animal fibers
|
|
Newly developing country
|
nation whose GDP per capita fall below world average
|
|
Nominal tariff
|
rates published in each country's tariffs scheduale
|
|
Non-store retailer
|
firms that sell goods to the ultimate consumer without use of traditional brick and mortar presentation
|
|
nontariff trade barriers
|
regulations and condtions that restrict flow of goods between countries
|
|
nonverbal communication
|
use appearance to communicate identity, age, sexual orientation, educaitonal level, occupation, economic status
|
|
Normal Good
|
spending pattern reflects an economic necessity; amount spent increases and decreases when income decreases but at a slower rate than the income fluctuation
|
|
Normal trade relations
|
(NTR)
replaces MFN because its more descriptive of the acutal meaning |
|
North American Free Trade Agreement
|
(NAFTA)
eliminated tariffs and quotas among Canada, Mexico, and US |
|
Office of Textiels and Apparel
|
(OTEXA)
Division of US dept. of commerce that monitors textile trade throughout the globe in both quantity and value |
|
Organization of American States
|
(OAS)
continued with the purpose of the Pan-American Union for closer economic, cultural, and political relations within the Americas |
|
Outsourcing
|
moving operations outside the country; the process of acquiring technical services in foreign countries
|
|
Outward Processing
|
outsourcing non-origin-conferring operations to a country with a lower rate
|
|
Overvalued Currency
|
can buy relatively less with a currency
|
|
Pan American Union
|
created in 1910 with the purpose of closer economic, cultural, and poilitical relations within the Americas
|
|
per Capita Expenditure
|
average spending per person in a given population
|
|
political strategy
|
used by govts., firms, or other organizations in dealing with important ans powerful components in the environment
|
|
Political system
|
pronciples, organizations, and methods, of govt. the components in an organization's structure and environment that can influence it's decisiona, survival or growth
|
|
Politics
|
methods or tactics involved in managing an organization, business, state, or govt., sometimes including crafty or unprincipled methods
|
|
Poverty
|
lack of enough uncome or resources to satisfy minimum needs
|
|
Poverty line
|
the point at which income and wealth are inadequate to maintain life and health at a subsistance level
|
|
Price elasticity of clothing expenditure
|
inelastic, positive, but less than one; defined as a normal good
|
|
Price elasticity of demand
|
relative changes in prices and expenditures;
% change in price / % change in income |
|
price support program
|
purchasing and storing products from the market to reduce the supply relaticve to demand and drvie up price
|
|
Primary source
|
most frequent means of clothing acquisition; purchased new ready-to-wear in developed countries; purchased second hand in less-developed countries
|
|
Printing
|
localized application of color to the surface of a yarn or fabric
|
|
Production subsidy
|
negative trade tax, payement of money from govt. to a business to defray costs of production
|
|
Productivity
|
ratio of the outputs of a production process to the inputs; a measure of pertion process to the imports; measure of performance towards an established goal
|
|
Protectionism
|
uses trade barriers to minimize imports
|
|
Prchased second-hand
|
inferior good in clothing consumption in developed countries
|
|
Purchasing Power Parity
|
(PPP)
determined by adjusting GDP in each country by a system that determines the realtive buying power of each currency |
|
purchasing power
|
amount of goods or services that can be acquired with a specified amount of currency at a certain time
|
|
Qualified Industrial Zone
|
(QIZ)
areas in Jordan that recieve duty and quota free trade status with the US with the participation of Israel in production process |
|
Quick Response
|
(QR)
business strategy incorporating time-based competitions, agility, and partnering to optimize the supply system |
|
Quota avoidance strategy
|
using transshipment and fabric blends not covered by quota
|
|
Quota
|
regulates quantities of goods that can be traded internationally; based on MFA
|
|
Social activist
|
person or organization endorsing a doctrine or policy of taking positive direct action to achieve a political or social end
|
|
Radio Frequency Identification
|
(RFID)
wireless barcodes to identify and track containers |
|
Rate of Duty
|
amount of tax to be assessed on imported or exported goods, usually according to a tariff schedual
|
|
Real Expenditure
|
outlay adjusted to reflect buying power reduced by inflation
|
|
Real-Time
|
immediately available when data are collected
|
|
Red Tape
|
unnecessary obstructions and delays in processing paperwork
|
|
Regionalization
|
reducing trade barriers in selected geographic regions to facilitate trade
|
|
Retail Product Developer
|
develops merchandise plans, creates the designs, and develops the specifications for the retailera' private brands
|
|
Rules of Origin
|
laws and regulations to determine country of origin of goods, country where goods were wholly obtained, or where the last substantial transformation has been carried out
|
|
Secondary Source
|
means of acquiring clothing other than the primary source; gifts, purchased used, handed down, rental, home sewing, custom-made and others
|
|
Social responsibility
|
obligation to a group or the general population for their well-being
|
|
Socialism
|
economic system where ownership, production, and distribution are operated by members of the community rather than by individuals or the govt.
|
|
Soft Goods
|
products made of textiles or other flexible materials, apparel, fabrics, linens, towels
|
|
Sourcing
|
activities performed to acquire materials, finished goods, or both, selecting a country or vendor to do business with
|
|
Southern South American Common Market
|
(MERCOSUR)
includes Argentina, Brazil, Paraguay, and Urugay and accounts for 70% of South America's total economy |
|
Specific Tariff
|
fized amount of tax per physical unit of imported product
|
|
Square Meter Equivalent
|
(SME)
a means of measuring quantities of garments that are being exported or imported |
|
Standard Industrial Classification System
|
(SIC)
Replaced by NAICS |
|
State Trading
|
involvement of governments in the business environment
|
|
Subsititute
|
product purchased and used in place of another
ex:pants for skirts |
|
Superior Goods
|
*economic luxuries
preferred product according to standards of consumption and living; amount spent increases as income increases and decreases when income decreases but at a faster rate |
|
Supranational Organization
|
requires that members give up a portion of their control over selected policies and allows the organization to compel compliance with its mandates
|
|
Sweatshop
|
firm with poor working conditions, very low pay, safety violations, and/or inhumane treatment of employees
|
|
Takeovers
|
absorption of weaker firms into more successful operations
|
|
Tariffs
|
taxes on imports or exports
|
|
Textile Complex
|
combination of textile related industries that supply soft goods to the world population
|
|
Textile Mill
|
manufacturing facility where yarns or fabrics are produced
|
|
Textile Product Mill
|
manufacturing facility that produced fabric and uses it to create consumable goods, including carpets, draperies
|
|
Thread
|
special form of yarn designed for use in sewing cut fabric pieces together to form garments or other products
|
|
Total income
|
gross or personal income
|
|
Totalitarian
|
one group maintains absolute control of govt. : DICTATORSHIP
|
|
Trade agreement
|
encouraging, regulating or restricting elements of trade between countries
|
|
Trade association
|
organization of executives that share common professional interests
|
|
Trade balance
|
quantitative relationship between exports and imports
|
|
Trade barriers
|
regulating or restricting trade, state trading, tariffs, quotas, and limits on foreign investment
|
|
Trade shows, fairs, exhibitions
|
inclue exhibits, demonstrations, and seminars presented by textile and apparel-related vendors
|
|
Trade surplus
|
a positive trade balance; value of eports exceeds value of imports
|
|
Trademark
|
word, phrase, logo, or other graphic symbol used to distinguish one firm's products or services from another
|
|
Trademark infringement
|
misleading the public to believe that the items bearing the trademark brand name are produced by and sold by the owner of the trademark when they are not
|
|
Trading bloc
|
group of countries that have created regional trade incentives and jointly participate in trade negotiations
|
|
Transparency of information
|
open communication among all participants within a system
|
|
Undervalued currency
|
can buy relatively more products or services
|
|
Undocumented Immigrant Workers
|
(UIW)
people from foreign countries without legal ID papers |
|
Unfair competition law
|
governs commercial activity that tends to confuse, mislead, or decieve customers or provide unfair business advantages
|
|
UNITEHERE!
|
current trade union that provides support for apparel production workers
|
|
Universal Product Code
|
(UPC)
bar code system for identifying and tracking products or containers |
|
Uruguay Round
|
final multilateral trade negotiations of GATT that resulted in the WTO and ATC
|
|
Vertical Integration
|
combined firms that perform different stages in the production of products
|
|
Voluntary export restraint
|
a "gentleman's agreement" between countries limiting trade
|
|
Well-being
|
a good or satisfactory condition of existance
|
|
World Bank
|
agency of UN with 184 members with a mission to improve the living standards of people in the developing world; refers to interantional bank for Reconstruction and Development and the Internal Development Association
|
|
World Customs Organization
|
(WCO)
global org. that improves operation and efficiency of Customs services |
|
World Trade Organization
|
(WTO)
147 member countries; deals with global rules of trade among nations |
|
Worldwide Responsible Apparel Production
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(WRAP)
independant non-profict corporation dedicated to the promotion and certification of lawful, humane, and ethical manufacturing throught the world |
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Woven fabrics
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produced by interlicking 2 or more sets of yarns at right angles
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Yarn
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countinuous strand produced by twisting fibers together
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Yarn forward Rule
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limits tariff and quota-free imports to garments made of domestically produced yarns and fabrics
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